As more streaming services like Netflix and Hulu continue to accumulate millions of subscribers, the more cable companies are losing more customers.
According to a recent forecast by eMarketer, the number of consumers cutting the cord is only going to increase this year.
Individuals canceling pay-TV service will spike by 32.8 percent to 33 million people this year. Previously, it was predicted that only 22 percent of households (27.1 million) would cut the chord this year.
“Most of the major traditional TV providers (Charter, Comcast, Dish, etc.) now have some way to integrate with Netflix,” said Christopher Bendtsen, eMarketer senior forecasting analyst to "Forbes." “These partnerships are still in the early stages, so we don’t foresee them having a significant impact reducing churn this year. With more pay TV and OTT partnerships expected in the future, combined with other strategies, providers could eventually slow, but not stop, the losses.”
In 2018, only 186.7 million U.S. adults will watch payTV in 2018, which is a decrease of 3.8 percent from last year.
As streaming services like Amazon Prime Video offer more original content, the more attractive they are to consumers. Why would they invest in cable when they are already investing in multiple platforms with original content not available anywhere else?
Popular TV shows that used to only be available through cable services can now also be watched on a few different streaming platforms.
“Consumers increasingly choose services on the strength of the programming they offer, and the platforms are stepping up with billions in spending on premium shows. Another factor driving the acceleration of cord-cutting is the availability of compelling and affordable live TV packages that are delivered via the internet without the need for installation fees or hardware," said Paul Verna, eMarketer principal analyst.
Read more about how consumers are trading cable for streaming platforms at "Forbes" now.