Home
Technology of satellite television
Direct broadcast via satellite
Television receive-only
Early history of satellite television
Beginning of the satellite TV industry
TVRO/C-band satellite era
1990s to present of satellite television
History of Freesat
Video on demand
Reception equipment of satellite television
Technical details of satellite television



Cord-cutting


In broadcast television, cord-cutting refers to the pattern of viewers, referred to as cord-cutters, cancelling their subscriptions to multichannel subscription television services available over cable or satellite, dropping pay television channels or reducing the number of hours of subscription TV viewed in response to competition from rival media available over the Internet such as Apple TV+, Crunchyroll, DC Universe, Disney+, FunimationNow, Google Play, Hulu, Netflix, Prime Video, Sling TV, VRV, YouTube Premium and YouTube TV. This Internet content is either free or significantly cheaper than the same content provided via cable.

Parks Associates estimated that in 2008, about 0.9 million American households relied entirely on the Internet for television viewing; by 2017, this figure had increased to 22.2 million. Leichtman Research Group found that six percent of Americans watched at least one show online each week in 2008, a figure that grew to eight percent in 2009. The number of Americans subscribing to cable service increased two percent in 2008, but the growth had slowed. Sanford C. Bernstein & Co. found that in the fourth quarter of 2008, the increase was seven-tenths of one percent, or 220,000 homes, the lowest ever recorded. A Centris report showed that 8% of Americans expected to cancel their pay television service by the third quarter of 2009. About half of Americans tried to get a better deal from a provider other than the one they were subscribed to. Amazon Video, Hulu, iTunes, Netflix, and YouTube made cancelling service possible for those who would be unable to see their favorite programs over the air. Sports programming was a big reason for not cancelling pay television service, although online options existed for many events. Another problem was the inability to watch many programs live, or at least soon enough in the case of a television series.

Comcast reported a loss of 275,000 subscribers in the third quarter of 2010, bringing the total for the calendar year to 625,000. The company said most of these losses were not from people leaving for another service. Moffett pointed out that cable companies needed to offer lower-cost packages, but a survey by Strategy Analytics revealed financial considerations were not the primary reason. People were not satisfied with what they could get, and online sources had a wider array of content. The survey showed that 13% of cable subscribers intended to cancel service in the next year. Slightly more than half were under the age of 40, and nearly all had a high school education. Two-thirds had or planned further schooling, and just over half earned at least $50,000 a year.

A 2013 Leichtman survey showed that the 13 largest MVPD companies, covering 94 percent of the country, experienced their first year-to-year subscriber losses. 80,000 subscribers dropped their service in the year ending March 31, 2013. 1.5 million cable customers dropped their service, with Time Warner Cable losing 553,000 and Comcast losing 359,000 subscribers. AT&T and Verizon added 1.32 million subscribers; DirecTV and Dish added 160,000 subscribers, compared to 439,000 the previous year. Before 2013, only quarter-to-quarter losses had been recorded industrywide. Internet video and switching to receiving television programming by antenna were reasons. Bruce Leichtman described the subscription television industry as "saturated". A TDG study showed nearly 101 million U.S. households subscribed to television at the industry's peak in 2011, but the number fell below 95 million in 2017. In 2013, the number of total subscribers to pay TV services fell by a quarter of a million. This was the first decline from one year to the next.

On November 28, 2011, a report by Credit Suisse media analyst Stefan Anninger said that young people who grew up accustomed to watching shows online would be less likely to subscribe to pay television services, terming these people as "cord-nevers". Anninger predicted that by the end of 2012, the industry's subscriber count would drop by 200,000 to 100.5 million; Anninger's report also stated that consumers were not likely to return to paying for television. In the case of land-line telephones, people had believed younger people would eventually get them, but now numerous subscribers only have mobile phones. Anninger predicted that the same would hold true for pay television, and that providers would need to offer lower-priced packages with fewer channels in order to reverse the trend. Also using the term "cord-nevers" was Richard Schneider, whose company Antennas Direct was selling antennas through the Internet. After a decade in business, the company was selling 600,000 antennas a year. However, Schneider said some people only knew of the Internet and services such as Netflix and were not even aware broadcast television even existed. In a speech on November 16, 2012, Time Warner CEO Jeff Bewkes said "cord nevers" did not see anything worth paying for.

In an effort to entice cord cutters and cord nevers, some cable television providers have begun offering Internet-only streaming services. Cablevision began to offer "Cord Cutter" packages that include a free digital antenna and access to its Optimum WiFi network, as well as the option to add HBO Now to the service, making it the first ever cable provider to do so. In 2015, Comcast and Time Warner Cable (TWC) began to trial television services delivered via their managed internet infrastructures; Comcast's "Stream" service offered access to broadcast networks, HBO, Xfinity StreamPix, and their respective TV Everywhere services. Outside of TVE apps, the service can only be accessed via Comcast home internet on supported devices. In October 2015, TWC began to trial a service under which subscribers are given a Roku 3 digital media player to access their service via the supplied TWC app, rather than a traditional set-top box. A TWC spokesperson emphasized that this offering would provide "the same TV and same packages delivered to the home today", but delivered over TWC-managed internet rather than a cable line. This service has since been transferred to the current Spectrum service after Time Warner Cable's merger with Charter, with an equivalent Apple TV app forthcoming.