Bad News For Cable: Internet-Only Households Now Total 16 Million
Nielsen’s Total Audience Report announced 16 million households in America use only the Internet — not cable — to watch television.
Known as “cord-cutters,” people are cutting their ties with traditional TV services and moving toward streaming shows and movies instead of paying mass media corporations like Viacom and Comcast. According to Nielsen’s second quarter report, Internet-only users grew from 2.15 million to 3.28 million, giving entertainment services like Netflix, Hulu and HBOGo a slew of dedicated customers.
“We have consistently reported the continued strength of TV and radio and the growth of digital media, but here we are showcasing the greater share of radio and PC usage during the day giving way to TV and TV-connected devices at night, and the consistent delivery of mobile media at all hours,” the Total Audience Report stated.
The new data, which was released on Monday, is based on national viewing trends from May and released in Nielsen’s second quarter report. (RELATED: Report: Apple To Unveil Next Apple TV Version In September)
A spokesman from the National Association of Broadcasters told the New York Post that “the explosion of ethnic and other program choices” available via Internet, streaming services led to the cord cutting.
Before the new data was released this week, Viacom CEO Philippe Dauman tried to downplay the eruption of streaming services, and told investors that cord cutters are nothing to fear and “people are totally overplaying this.” Viacom’s stock has fallen 43 percent this year alone, obliterating billions of dollars of value, according to The New York Post.
The total number of households that pay for broadcast and cable services has also declined, slipping from 101.6 million homes to 100.4 million.