Cord-cutting has "been a thing for a long time," but new consumer research "suggests an escalating aversion to traditional pay-TV service," according to Mike Snider of USA TODAY. A survey released on Friday by Magid Media Futures shows that the segment of U.S. homes relying on video delivered via broadband is "on the rise." Also, Millennials are "more likely to cut ties with their cable or satellite provider," with 14% of 21-40-year-olds expressing such a preference. That is "potentially a big hit for traditional TV providers who want to hook potential customers at a younger age." Another "bad signal for traditional pay-TV providers" is that about 10% of live sports enthusiasts who subscribe to pay TV said that they are "very likely to cut the cord." Magid Advisors President Mike Vorhaus said that live sports has been "seen as a key reason consumers stick with pay TV." But Vorhaus added that this trend "could be a sign that more traditional sports such as baseball, football and basketball have an aging audience," while younger consumers, who are "more likely to be cord-nevers or cord-cutters, prefer soccer, UFC and eSports -- all more likely to watched via broadband." Leichtman Research Group data shows that major pay-TV providers have "about 88 million subscribers after having lost 305,000 subscribers" in Q1 '18 and 1.5 million last year. The Consumer Technology Associations said that consumers are "expected to spend" $13B on video-streaming subscription services in '18, 39% more than in '17. This "disruption across the entertainment ecosystem" is "behind Disney and Comcast's bidding war for 21st Century Fox' cache of entertainment assets" (USATODAY.com, 6/22).
