Streaming TV Viewers in the U.S. Could Surpass Traditional Pay TV Viewers in Five Years
September 18 2019 - 9:00AM
Business Wire
Roku Study Shows Mainstream Viewers Seeking
Value and Choice are Moving to Streaming Faster than Ever
Before
Roku, Inc. (NASDAQ: ROKU) today released a 2019 Cord Cutting
study that predicts approximately 60 million TV households are
expected to access video on their TV exclusively through streaming
within the next five years. If this happens, for the first time,
streamers will surpass traditional Pay TV viewers.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190918005240/en/
Roku issues 2019 Cord Cutting study.
(Photo: Business Wire)
Overall U.S. market data suggests two million Americans have
‘cut the cord’ so far in 2019, moving from traditional Pay TV
(cable or satellite television subscriptions). That’s after 3.5
million people gave up traditional Pay TV video subscriptions in
2018. Consumers who are already streaming include Cord Cutters, TV
households that previously had Pay TV; Cord Shavers who may pay for
traditional cable but have reduced their package in the last few
years; and Cord Nevers, those who have never had Pay TV.
New findings from the 2019 Roku Cord Cutter study and analysis
of behavioral usage on the Roku® platform show that a new
generation of Cord Cutters has emerged. Analysis indicates shifts
in attitudes, behaviors and, most importantly, viewership among the
new generation of Cord Cutters. 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.
Factors Driving the Move to Streaming
The Roku Cord Cutting study points to five factors that are
driving the acceleration of cord cutting including:
- Virtual multichannel video programming distributors (vMVPDs)
offer a bridge for consumers who want to cut the cord but don’t
want to miss out on network and live TV programming that
traditional Pay TV services offer. When consumers become aware that
they can stream the same live local channels, including sports,
news, reality, and top network channels with an electronic
programming guide (EPG) and video on demand (VOD) at a reduced
price, some of their barriers to cord cutting are removed.
- An abundance of high-quality content is available through
streaming. Companies who offer subscription video on demand
services (SVOD) are spending billions on creating and promoting
award-winning original content.
- Viewers are finding value in the ability to watch ad-supported
video on demand (AVOD). In fact, 73 percent of all video streamers
in the Roku study watch AVOD and 45 percent watch more free TV than
any other streaming video option. Many Cord Cutters don’t mind
viewing video ads in exchange for viewing free entertainment. In
contrast, many traditional linear TV viewers reported in the study
that there are too many ads within the content they watch.
- Of those surveyed for the Roku study, 74 percent say streaming
is more convenient than Pay TV services and 89 percent report that
using a streaming device is very easy.
- Increasingly, cable and satellite companies are devoting less
effort to trying to retain low-margin video subscribers.
Roku Customers Rank the Highest for Satisfaction Among Cord
Cutters
Roku’s analysis of the Cord Cutting study shows that 82 percent
of all Cord Cutters who participated in the study are extremely
satisfied with their decision to cut the cord while 92 percent of
Roku customers shared the same sentiment.
“This report shows there is a huge, new generation of streamers
who enjoy live and free TV and are extremely satisfied with the
decision to watch TV without cable or satellite,” said Matthew
Anderson, Roku chief marketing officer. “Half of Roku’s U.S.
customers don’t have traditional cable and satellite subscriptions
and they enjoy the value, ease and breadth of content we offer
them. The Roku study shows that the shift to streaming is more
popular and growing faster than ever before.”
The Roku Cord Cutting Study
Roku conducted its second annual comprehensive study on the TV
household landscape with participation from 7,000 U.S. adults age
18 and over, and 12,000 Roku account-holding U.S. adults age 18 and
over.
The full study titled “The New Generation of Cord Cutters” can
be viewed at:
https://advertising.roku.com/download-cord-cutting-is-now-mainstream
About Roku, Inc.
Roku pioneered streaming to the TV. We connect users to the
streaming content they love, enable content publishers to build and
monetize large audiences, and provide advertisers with unique
capabilities to engage consumers. Roku TV™ models and Roku
streaming players are available around the world through direct
retail sales and licensing arrangements with TV OEMs and service
operators. Roku audio products are available in the U.S. through
direct retail sales. Roku is headquartered in Los Gatos, Calif.
U.S.A.
This press release contains “forward-looking” statements that
are based on our beliefs and assumptions and on information
currently available to us on the date of this press release.
Forward-looking statements may involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from those
expressed or implied by the forward-looking statements. These
statements include but are not limited to the number of households
that are expected to access video through streaming in the next
five years and when the number of households streaming TV will
surpass traditional Pay TV viewers. Except as required by law, we
assume no obligation to update these forward-looking statements
publicly, or to update the reasons actual results could differ
materially from those anticipated in the forward-looking
statements, even if new information becomes available in the
future. Important factors that could cause our actual results to
differ materially are detailed from time to time in the reports
Roku, Inc. files with the Securities and Exchange Commission,
including our Form 10-K for the year ended December 31, 2018 and
our Quarterly Report on Form 10-Q for the quarter ended June 30,
2019. Copies of reports filed with the SEC are posted on Roku’s
website and are available from Roku without charge.
Roku is a registered trademark and Roku TV is a trademark of
Roku, Inc. in the U.S. and in other countries.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190918005240/en/
Diane Carlini Dcarlini@roku.com
Roku (NASDAQ:ROKU)
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