Amplifying a small but growing trend, the rate of cord-cutting continues to rise, according to TiVo’s Q1 2017 Video Trends Report.
The study, based on a survey of 3,081 adults in the U.S. and Canada, found that 84.8% of respondents had a pay TV service. However, of the 15.2% of those who did not take a pay TV service, 21.8% said they cut the cord within the last 12 months, an increase of 4.4% year-over-year, the report found.
Almost 46% of the group without pay TV use an antenna to get basic broadcast TV networks, the study found.
Price, at 79.7%, remained the top reason why consumers cut pay TV service, though other reasons are starting to encroach. About 58% said OTT options are a top reason for cutting the cord, up 9.3% quarter-over-quarter, followed by the use of an antenna for TV (32.5%, up 5.3% q/q), and the desire to binge-watch a TV series through a streaming service (26.7%, up 8.2% q/q).
The survey also found that most consumers (77.3%) remain in favor of an a la carte option with respect to TV channels. The average price U.S. consumers would be willing to pay for their 20 top channels is $28.31, a slight decrease versus findings in the prior quarter, and down 14% over a two-quarter period. TiVo suggested that the prices for new OTT TV options such as Sling TV, PlayStation Vue and Hulu could be causing consumers to rethink what they are paying for TV service.
The top five channels across all respondents were ABC (58.4%), Discovery Channel (56.6%), CBS (54.1%), History (52.5%), and NBC (52%).
Regarding general TV viewing habits, the survey found that 85.4% of respondents watch live TV on a daily basis, and 39.1% watch 30 minutes to two hours of live TV each day. Almost 72% watch recorded shows and movies each day, with 36.% of that group watching between 30 minutes to two hours of recorded content daily.
Some 67.8% said they view content on an OTT/streaming service each day, up 3.1% compared to the prior quarter.