| 6 hours ago
It’s become an article of faith among people who write about the television industry from a distance that a massive wave of cord cutting is upending television as we know it and the entire ecosystem is in its death throes.
This is perplexing (to put it mildly) for those of us who actually work in the industry, as nothing could be further from the truth. Pay TV is a mature industry without a lot of room for growth, but from quarter to quarter, the number of people actually abandoning pay TV has rarely, if ever, exceeded 1 percent of the total user base.
So where does this “TV is dead!” narrative come from, and how did it start?
There are two issues: numbers and definitions. We’ll start with the former.
Pay TV in the U.S. has a penetration rate in excess of 80 percent–85 percent. That’s because we’re a very large country with bad over the air reception, and so somewhere in the range of 100 million households have pay TV subscriptions. When 600,000 of those households decide they no longer want pay TV, it certainly sounds like a hefty number. But in reality, it’s only 0.6 percent of the pay-TV population. In most industries, 0.6 percent of all users would be a rounding error, but given the number of clicks a good “TV is dead” headline can get, you’ll often see headlines that trumpet “Cable companies lose over half a
Read more here: https://www.adweek.com/tv-video/tv-isnt-dying-subscriptions-are-changing-from-cable-to-broadband-instead/