Video subscriber growth for traditional pay-TV distributors may be a thing of the past, and "cord nevers," or young people who have never subscribed and don't plan to start, are part of the reason.
Cord-cutting is only attractive if there's lots of quality content and it's not expensive. Both of those factors could be going away soon--or at lease be substantially diminished--according to Darren Feher, CEO of Conviva, who expects that higher fees and less content will become the norm as the online video space finds its footing.
Over-the-top (OTT) video offerings, a stagnant economy and ongoing and new competition from outside sources such as IPTV players are combining to hammer the cable industry's subscriber base, the most recent Television Intelligence Report from IHS Screen Digest found.
There are 11 million broadband households in the United States comprised of cord cutters and cord nevers who do not subscribe to pay TV services. This group, lumped together as "pay TV refugees," now makes up about 13 percent of the entire U.S. broadband household universe.