Migration from cable, satellite picks up speed | Media Analysis | Business
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Research from full-service advertising agency Colling Media has endorsed the prevalent view of the rapid increased in cord-cutting in the US with the commensurate acceleration in subscription to streaming services.
disney 12April2019
Even though the sample size of the Colling Media Snapshot Survey, conducted on 9 August 2019 — namely a panel of 344 US adults — the findings were consistent with larger recent surveys, showing that migration away from cable is picking up speed. It found that 20% of respondents had cancelled their cable TV subscription within the past two months and that in the same period 39% had subscribed to the likes of Netflix, Hulu and Amazon Prime Video. In addition, 46% of consumers say that they started a new subscription to a video-on-demand streaming service within the past two months.

As one may expect, the cancellation rate of cable TV services by consumers aged 44 and under was found to be near twice the rate of those over 45, namely 33%, compared with 17%. Younger consumers were also much more likely to have subscribed to a video-on-demand service. Three-fifths of consumers aged 44 and under subscribed to such a service in the past two months, compared with 29% of those over 45.

Colling also found that over the past two months, 83% of consumers said that they had watched a programme, movie or video on their desktop or laptop computer, tablet, smartphone, or another mobile device.
Showing just how much, among its sample at least, that the new direct-to-consumer services were already being anticipated, Colling’s survey noted that 46% of consumers said that they were likely or very likely to subscribe to The Disney Company's bundling of Disney+, ESPN+, and Hulu.

The survey concluded that the data makes it clear that consumers are choosing streaming entertainment services for the same reason they swapped out home phones for mobile phones: that is, consumers preferred mobile, on-demand and customised choices.

In a call to action, the agency warned that advertisers clinging to traditional media should be very concerned about their cord-cutting customers. It added that more than ever, it was vital for brands to incorporate OTT programmatic advertising into their marketing mix for optimal results.

“It's easy to think the cord-cutting trend might have slowed down, but our research shows an incredible number of consumers continue to move on from cable and dish services," said agcny CEO Brian Colling commenting on the Media Snapshot Survey. "People are choosing streaming entertainment services for the same reason they swapped out home phones for cell phones. Mobile, on-demand, and customised choices triumph every time. One way to ensure that cord-cutting customers see a brand's advertising is by incorporating over-the-top (OTT) into the marketing mix. Many advertisers are buying OTT directly from Hulu and other platforms, and our advanced system can increase the lift substantially by also targeting an advertiser's first-party data and leads, retargeting site visitors, and adding data that indicates purchasing intent.”