TV cord-cutting will ramp up 33% this year, according to Emarketer

Netflix’s
“Arrested Development.”
Netflix

• TV cord-cutting will outpace projections and increase
  an estimated 32.8% in 2018, according to new analysis from
  Emarketer. 
• The firm projects that the total number of cord-cutters
  will jump from 24.9 million users in 2017 up to 33 million by
  the end of this year. 
• This hike in cord-cutting comes despite an increasing
  number of pay-TV providers forming partnerships with
  over-the-top (OTT) services like Netflix in an attempt to
  retain customers.

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The percentage of people ditching their traditional pay-TV
packages is expected to skyrocket this year, according to a new
study from Emarketer. 

The firm is projecting a 32.8% increase in 2018 for the overall
number of cord-cutters: those who cancel their paid TV
subscription with a cable, satellite, or telecommunications
company.

This increase — far outpacing the firm’s previous projection
(from July 2017) of a 22% increase for this year — would bring
the total estimated cord-cutters from 24.9 million users in 2017
up to 33 million by the end of 2018. 

EMarketer

The significant hike in cord-cutting comes despite a swath of
pay-TV providers forming partnerships with over-the-top (OTT)
services like Netflix in an attempt to retain customers. 

“Most of the major traditional TV providers [Charter, Comcast,
Dish, etc.] now have some way to integrate with Netflix,”
Emarketer senior forecasting analyst Christopher Bendtsen said.
“These partnerships are still in the early stages, so we don’t
foresee them having a significant impact reducing churn this
year. With more pay TV and OTT partnerships expected in the
future, combined with other strategies, providers could
eventually slow — but not stop — the losses.”

Overall, Emarketer estimates that 186.7 million adults in the US
will watch pay TV (cable, satellite, or telco) in 2018, which is
down 3.8% over last year — and slightly higher than the 3.4% drop
in 2017.

The firm also notes that streaming platforms like Netflix and
YouTube are meanwhile experiencing rapid growth fueled largely by
demand for their original programming. 

“The main factor fueling growth of on-demand streaming platforms
is their original content,” Emarketer principal analyst Paul
Verna said. “Consumers increasingly choose services on the
strength of the programming they offer, and the platforms are
stepping up with billions in spending on premium shows.”

Netflix, which is
increasingly dominating the field of original programming in the
eyes of consumers, will have spent around $8 billion on
content in an effort to have over 1,000 original shows and
films on its service by the end of the
year.

The streaming service’s spending is also paying increasing
dividends in the realm of accolades, as Netflix broke a 17-year
streak from HBO this year to
earn the most Emmy nominations of any network — just five
years after the company notched its first nominations in
2013. 

Jenny Chang/Business Insider