Cord cutting to nearly double by 2022

Feb. 1, 2018
Kagan is predicting that cord cutting will nearly double by 2022, with broadband-only households expected to grow from 19 million in 2017 to ...

Kagan is predicting that cord cutting will nearly double by 2022, with broadband-only households expected to grow from 19 million in 2017 to 37.2 million by 2022. Kagan is a media research group within S&P Global Market Intelligence.

"A perfect storm of long-term trends including increase in streaming content suppliers, widespread utility-like status of broadband, and a demographic shift attributable to shrinking baby boomers and rising millennials, is yielding higher broadband-only home gains than initially anticipated, prompting a significant upward update for our projections," said Tony Lenoir, senior Kagan research analyst.

Kagan expects 38.4% of the combined residential cable and telco wireline broadband subscribers in 2022 to eschew legacy multichannel video distribution and rely mostly on a combination of broadband and over-the-air broadcast signals for home video entertainment.

Other findings indicate:

  • Kagan expects broadband-only homes, or households without a traditional multichannel video package but a subscription to wireline broadband, to rise at a 14.4% compound annual growth rate (CAGR) from 2017 to 2022.
  • Broadband-only homes are expected to make up 29.2% of U.S. occupied households by 2022. Kagan expects traditional multichannel penetration to be in the low 60% range at that time.
  • Operators that offer video as well as broadband may be in an advantageous position. By 2020, cable is expected to count more than 70 million broadband customers. The sector's video subscriber count peaked at 67.1 million in 2001.