With inexpensive streaming video enticing more consumers to cut the cord, research company Kagan expects the number of homes with broadband and no-pay TV to nearly double to 40.8 million in 2023 from 23.3 million in 2018.
Those broadband-only homes will grow at an 11.9% compound annual growth rate over five years and will represent nearly a third of U.S. households in 2023, according to Kagan, part of S&P Global Market Intelligence.
“The steep upward trend of due to ‘cord-cutting’ is not surprising given the abundance of online video services on the market, although this could be a circular argument, with more companies jumping on the streaming video bandwagon in response to the growing broadband-only market,” said Tony Lenoir, senior Kagan research analyst.
“The value proposition of streaming video services touches a chord with the average consumer. The vast majority of streaming services offer free trial periods, effectively allowing consumers to shop around while bypassing hardware hassles associated with legacy video distribution,” Lenoir said. “This coupled with the fact that streaming services are typically screen-agnostic and seamlessly portable, offer individual, customized consumption for customers.”
Kagan estimates that cable and telco broadband will serve nearly 75% of the U.S. in 2023.