Given the accelerating rate at which consumers are going online for entertainment, Roku said that streaming TV viewers could surpass the amount of pay TV viewers soon.
According to the company’s 2019 Cord Cutting study, 60 million TV households are expected to access video on their TV exclusively through streaming within the next five years, and if this happens, streamers will surpass traditional pay TV viewers for the first time.
The company said that U.S. market data suggests that two million Americans have cut the cord so far in 2019, after 3.5 million did the same in 2018. According to Roku’s research, cord cutters’ behaviors are shifting.
“Essentially, their viewing behavior more closely mirrors that of average mainstream TV viewers, but this new generation of Cord Cutters took the initiative to seek out better value and choice in how they consume TV,” the company wrote in a news release.
Roku provides some reasons why it believes cord cutting is accelerating. It said that virtual MVPDs like YouTube TV are a “bridge” for consumers who want to cut the cord but don’t want to miss out on live TV, but that more consumers are realizing they can achieve the same setup with an electronic programming guide and VOD services at a reduced price.
The company also attributed the rise to more quality streaming content on subscription and ad-supported services. It said that 73% of all video streamers in the Roku study watch AVOD and 45% watch more free TV than any other streaming video option. Another 74% say streaming is more convenient than pay TV services and 89% report that using a streaming device is very easy.