The analyst noted that in 2010, only 8% of U.S. broadband households lived MVPD-free, with streaming video considered no more than a nice supplement to the 500-channel universe of pay-TV. By 2015, the rate doubled to 16%, then doubled again to 35% in 2020.

TDG expects this trend to continue through the decade, with a tipping point occurring no later than 2026, after which a majority of US broadband households will be free of multichannel video programming distributors (MVPDs).Yet the study did stress that just because they live without an MVPD service did not mean they were not regular TV viewers. The broadband homes spent 28 hours each week watching TV, roughly 10% less than broadband households that subscribe to a legacy or virtual pay-TV service (BBPTVs).

TDG calculates that roughly 60% of broadband owners’ (BBOs) TV time was spent watching streaming video, 50% greater than their counterparts, with SVOD by far the TV content source used most often. Netflix, and Hulu were the three most popular SVOD apps among BBOs, as they are among their counterparts. However, in each case BBOs are more likely than BBPTVs to use the app, especially Hulu (51% vs. 41%).

"By 2025, nine-in-ten US households will use residential broadband, of which roughly half will use a pay-TV service from a legacy or virtual MVPD,” said Paul Hockenbury, industry researcher and TDG senior analyst commenting on the study.

“The space between the two—so-called broadband-only or BBO customers—offers video creators and distributors lucrative growth opportunities. A decade ago, the BBO segment was comprised almost exclusively of bleeding-edge adopters; those defined by a fascination with new products and services and a pocketbook to fund their experiments. Today, the BBO segment is largely defined by early-mainstream dispositions: buying only when the price has come down, the technology has peer-demonstrated benefits, and plenty of support is available.”