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DirecTV enters FAST streaming space: This new service offers free, ad-supported content and genre-specific bundles, aiming to attract cord-cutters and younger audiences.

Digital pay TV services are slowing cord-cutting. But the rate at which they replace traditional TV defectors is decelerating.

Discovery鈥檚 D2C business as cord-cutting continues to impact traditional TV revenues. We forecast that cord-cutters will surpass half the US population next year, reaching 58.3% of all US adults by 2028. CEO David Zaslav expressed confidence in exceeding the $1 billion in streaming profitability target by 2025, a positive signal for investors as streaming continues to evolve.

Its Super Bowl broadcast is likely to draw significant attention from cord-cutters for its free digital access, giving Fox an opportunity to onboard new viewers during the most-watched event of the year.

Cord-cutting, bundling, and price increases are all contributing to streaming services increasing their subscription revenues. While advertising is receiving growing attention, subscriptions still account for most streaming revenues. Key Question: How do streaming services' subscription revenues stack up compared with their advertising revenues?

This is tied to cord-cutting as well as YouTube鈥檚 availability and content diversity compared with traditional TV. Children under 12 spend an average of 1:48 a day with YouTube, according to Giraffe Insights and Precise TV. This is followed by video-on-demand (VOD) (1:46) and broadcast TV (1:35).

Key Stat: YouTube adoption among children under 12 will surpass that of linear television by 2026 due to a combination of cord-cutting and YouTube鈥檚 accessibility. Executive Summary. Nearly three-quarters of Gen Alphas are online. This is in violation of most platforms鈥� age restrictions, and parents and legislators are addressing the issue.

Cord-cutting has continued to climb, unraveling the traditional TV bundle and pressuring sports rights-holders to follow audiences to streaming. Now, at a time when media companies are pulling back on other content spending, they鈥檙e spending more on sports. The reasoning? Sports viewership is predictable鈥攁nd produces a big return. More wins for advertisers.

The number of people who watch live sports via traditional TV continues to shrink because cord-cutting is reducing the number of total traditional TV viewers. However, people who still pay for traditional TV are actually more likely to watch live sports than they used to be. This year, more than three-fourths of traditional pay TV viewers will watch live sports monthly.

That鈥檚 because political and live-event programming continue to drive cable revenues, distinguishing Fox from peers facing more significant cord-cutting pressures. Fox鈥檚 revamped ad sales structure sets the company up for increased revenue growth and should help it capitalize on cross-platform advertising opportunities through sports, Tubi, and news positions.

Many cord-cutters or cord-nevers turned to streaming to help counteract the high costs of cable subscriptions, only to find the ad-free prices quickly adding up. Now they have more price-efficient options, even on their favorite premium channels. One place this is evident is in the increasing popularity of FAST (free ad-supported streaming TV) channels.

As the TV and streaming landscape becomes increasingly fragmented, the terms used to describe different ways to watch are multiplying. We鈥檝e already broken down the difference between connected TV (CTV) and OTT. With subscription video-on-demand (SVOD) platforms becoming ad-supported SVODs, and ad-supported video on demand (AVOD) platforms building out free ad-supported TV (FAST) platforms, it鈥檚 difficult to keep track of what cord-cutters are actually watching. Here鈥檚 a breakdown.

But what was interesting about that story is that even though you have been hearing about how cord cutters have been growing and growing and growing, and eventually we had to invent this new term, cord nevers, about people who they just skipped right over the part where you pay for cable TV and then eventually cancel, and how cord cutters and cord nevers collectively were growing and growing and people

Cord-cutting will continue. People will continue to increase the amount of time they spend streaming video. But as this happens, the overwhelming share of time people spend looking at ads on TV screens will still come from old-school TV. CTV ad spending and ad inventory are growing, but from a smaller base compared with linear TV. Analyzing impressions remains a key aspect of ad campaigns.

On today's podcast episode, we discuss what's most to blame for this sustained ad spending rebound, what concerns us about it, and what we expect to see from ad spending in 2024. "In Other News," we talk about why ad-blocking rates are experiencing a gradual uptick and a cord-cutting milestone. Tune in to the discussion with our director of forecasting Peter Newman and vice president of content Paul Verna.

The total number of traditional pay TV households fell behind the total number of cord-cutter and cord-never households back in 2022. However, that pivot point was not as ominous for the TV industry as it could have been thanks to the emergence of digital pay TV, which meant that most linear TV channels were still reaching most households even in 2024. That reprieve is now over.

Time spent with cable and broadcast TV is decreasing, a trend that鈥檚 been particularly pronounced over the past year. Streaming accounted for 36.9% of US time spent with TV as of September 2022, up from 27.7% in the same month in 2021, according to Nielsen. Streaming stole share from all other TV categories.

Even as we approach a potential ad spend winter, connected TV (CTV) advertising is in decent shape. Netflix and Disney+ just joined the ad-supported streaming game. Cord-cutters are outpacing pay TV viewers. And YouTube is increasingly watched on CTVs. These five charts offer a closer look at CTV鈥檚 past, present, and future.