The proliferation of mobile devices and increased adoption of services like Netflix is helping to change Americans' media consumption habits.
U.S. adults spent an average of 10 hours and 42 minutes per month in the third quarter of this year watching streaming video, according to data published by Nielsen Dec. 3. That's an increase of 60% over the same period last year. The increase comes as traditional live, or "linear," TV viewership declined by 3.9%.
The Nielsen survey noted a difference in media consumption habits along racial and ethnic lines, with African Americans watching the most hours of traditional TV of any group, while Asian Americans watched the fewest. The average American still watches 4 hours and 32 minutes of traditional TV per day, Nielsen said.
Fortune reported Dec. 9 that HBO is looking to launch its standalone online streaming service in time for the debut of the next season of "Game of Thrones" in April.
ComScore data published Oct. 14 reveal that 24% of 18- to 24-year-olds do not have a traditional pay TV service. Of these people, 13% previously had pay TV service but later cut the cord while 11% have never subscribed to a pay TV service.
"We think cord shaving is a reality going forward."
Several TV industry executives told the Wall Street Journal Oct. 9 that they're now more concerned with "cord shaving" (downgrading to less expensive bundles) than outright cord cutting. Nearly 5% of households dropped ESPN and TNT over the past four years.
ESPN and TNT are estimated by SNL Kagan, a research firm, to be the two most expensive cable channels, with ESPN collecting $6.04 per subscriber and TNT collecting $1.44 per subscriber. "Skinny bundles," which are aimed at cost-conscious consumers, typically don't include these and other expensive channels.
These skinny bundles typically start at around $30 per month (although the price can vary by market) and often include broadband Internet and a limited selection of cable channels. More expensive bundles including hundreds of channels can cost more than $100 per month in some cases.
Time Warner Cable lost 184,000 video subscribers in Q3 2014, the company reported Oct. 30. Analysts had only expected a loss of 136,000 video subscribers. The company now has 10.8 million video subscribers, down from 11.4 million one year ago. TWC said the loss was partially offset by the addition of 92,000 broadband subscribers.
Comcast, which is in the process of buying TWC for $45.2 billion, similarly lost 81,000 video subscribers in Q3 2014. That number was also partially offset by the addition of 315,000 new broadband subscribers.
An April 2014 survey published by Experian Marketing Services said that 7.6 million U.S. households, or 6.5% of all U.S. households, had cut the cord -- up 44% in the past three years. Ownership of an iPhone or iPad "noticeably increases the odds" that a household will cut the cord, Experian said.