One of the questions cable TV executives often ask is how many cord cutters can they get to subscribe to a live TV streaming service like YouTube TV, Hulu, or Fubo. Now, thanks to a report from MoffettNathanson, we have an idea of how many subscriber who cancel cable TV switch to a live TV streaming service.
According to the report, just 29.2% of cord cutters select a live TV streaming service like YouTube TV to replace it. That means more than 70% of all new cord cutters go directly to an on-demand only service like Disney+, Peacock, or Paramount.
This comes as cable cord cutting is growing at a staggering rate. Almost 22,000 people are canceling cable TV every single day and, if this trend continues, more than 8 million Americans will ditch cable TV in 2024 in favor of streaming. This would mark a noticeable jump in subscriber losses for pay TV who had hoped streaming services like Fubo and YouTube TV would replace cable TV losses.
For years, industry observers hoped that live TV streaming services like YouTube TV, Fubo, and Hulu + Live TV would offset the losses from traditional cable subscriptions. However, these services collectively added a mere 49,000 subscribers in the second quarter, according to a report by MoffettNathanson.
With this trend, many are wondering what the future of live TV looks like as increasingly Americans are happy with on-demand leaving cable networks wondering how to move forward.