The segment of wireline broadband homes not subscribing to traditional multichannel crossed symbolic thresholds in the first quarter of 2019, underscoring the rapid evolution of home video preferences in the U.S.
Kagan, a media research group with S&P Global Market Intelligence, estimates that more than 20% of U.S. occupied homes and over one-quarter of wireline broadband households fit our broadband-only definition as of Q1'19.
Click here for Kagan's full Q1'19 broadband-only home report.
The meteoric rise of the segment speaks to the popularity of online entertainment and puts in perspective recent high-profile technology, media and telecommunications developments such as:
- Comcast Corp.'s NBC Universal direct-to-consumer strategy.
- Charter Communications Inc.'s second high-profile over-the-top announcement in approximately 12 months.
- Walt Disney Co.'s unveiling of Disney+.
- Apple Inc.'s AppleTV+ ambitions.
- AT&T Inc.'s programmed launched of a WarnerMedia-based "Netflix competitor" in the fourth quarter.
- Disney's deals to acquire AT&T's and Comcast's stakes in Hulu LLC.
"Broadband-only homes" are defined as wireline broadband-connected U.S. occupied households without a traditional multichannel video package.
Broadband-only households more often than not consume video content via subscriptions to OTT and virtual multichannel services and/or over-the-air broadcast TV.
Nonmultichannel broadband homes differ from OTT video substitution, or cord cutting, in that they encompass OTT substitutes, virtual multichannel, over-the-air and nonvideo households subscribing to broadband internet.
Our estimates of the "broadband-only" universe do not take into consideration those households relying solely on wireless data for their broadband needs.