US Cord Cutting Full Year 2018 Streaming Transition Picks Up Pace

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The 20,000 Foot View: Cord cutting is now an established component of the US pay-TV landscape, reinforcing the role of the US as the canary in the mine for the global pay-TV business. Cord cutting accelerated in 2018, highlighting the secular nature of the phenomenon. However, this is not simply a story of decline but instead one of transition, with streaming growing ­— in a wider sense — the total base of pay-TV subscribers. With ever more overlaps in consumer behaviour and segments across traditional pay-TV and streaming, all signs point to more of the same in 2019.

Key Findings

• US cord cutting totalled        million in 2018, up from        million in 2017, representing a        increase
• Satellite pay-TV providers lost        million subscribers in 2018, the largest loss of subscribers and also the largest percentage change       
• AT&T shed the most subscribers of any US pay-TV provider in 2018        million)
       of US cord cutters in        2018 were streaming video on demand (SVOD) users, illustrating that cord cutting is part of a technology transition
• SVOD services added        million subscribers in 2018, pushing the combined pay-TV subscriber base to        million
• Half of US pay-TV subscribers in        2018 were also SVOD users 
• Cord cutters are around eight times more likely to use HBO Now and CBS All Access than overall consumers
• Hulu has the highest rate of cord cutting        followed by Amazon and then Netflix
• Binge-watching consumers are more likely to become cord cutters, making up        of cord cutters in        2018
       of cord shavers regularly watch sports on TV, illustrating that streaming-savvy sports fans are cutting back their pay-TV subscriptions to retain sports coverage