It looks like viewers are finally getting into finding workarounds to the average cable bundle. According to research from eMarketer the number of American households ditching cable plans has jumped from 10.9 percent from last year, with 4.9 million households unsubscribing. They predict that by 2016, only 100 million households will be using traditional pay TV packages to tune in.
Paul Verna, a senior analyst at eMarketer says in a statement that:
In addition to standalone offerings from the likes of HBO, there are new digital bundles that include many of the channels consumers could only have received with cable and satellite subscriptions in the past. This widespread availability of digital content makes cord-cutting a viable option for a growing segment of the viewing population.
And original content on those streaming platforms is getting better and more varied. This year alone, Netflix plans to spend $5 billion on original programming. Amazon has increased its budget, too. While cable customers are dropping off, the number of cord-nevers is growing — there’s just no real incentive for Millennials and Generation Z to sign on. eMarketer reports that 12.9 percent of American adults have never subscribed to a traditional television package. Sorry, telco CEOs: looks like you might be wrong.