Research: 30m+ Americans ‘Cord Nevers’
April 10, 2019
While media attention often focuses on ‘Cord Cutters’ – adults who give up their cable or satellite TV subscriptions – new MRI-Simmons research shows that a growing number of Americans have never paid for a traditional TV connection.
The latest Cord Evolution insights reveal that roughly 31 million US consumers – 12 per cent of the adult population – are Cord Nevers (CNs); that represents an increase over the 2017 level of 9 per cent. With a median age of 33, the typical Cord Never’s average household income has risen by 27 per cent over the last two years, from $41,500 to $52,800.
Among Cord Nevers, 27 per cent – about 8 million adults – say they plan to sign up for a pay-TV service in the next six months. Some 70 per cent of these cord seekers say they will subscribe to a traditional (cable, fibre optic, or satellite) service, while 30 per cent – 41 per cent of 18 to 34 years olds – expect to acquire a streaming TV package, such as Hulu with Live TV, DirectTV Now, or Sling TV.
Why are millions of Cord Nevers looking to connect to pay-TV service? The reasons vary dramatically by age. The option to channel surf is a big motivator for those in the 35-to-49 and 50+ groups, while the youngest adults (18 to 34) are seeking access and the ability to watch and find shows easily.
“Young people used to say that, as soon as they got their first well-paying job, they would sign up for the full suite of traditional TV services,” said Karen Ramspacher, SVP Innovations & Insights at MRI-Simmons. “Today, there are many more options for connecting to TVideo content – so competition for these subscription dollars is fierce. As they grow in numbers and wealth, today’s Cord Nevers definitely represent an opportunity for content providers – but understanding the Nevers’ underlying motivations is essential to targeting them effectively.”
Why Cord Nevers are likely to subscribe to a pay-TV service in the next 6 months (by age group)
| 18+ | 18 to 34 | 35 to 49 | 50+ | |||||||||
| I want to be able to channel surf | 27 per cent* | 18 per cent
(67) |
46 per cent
(168) |
31 per cent
(113) |
||||||||
| I can get a good deal on a TV package | 23 per cent | 30 per cent
(131) |
10 per cent
(45) |
15 per cent
(67) |
||||||||
| It is easier to watch/find shows | 21 per cent | 29 per cent
(138) |
7 per cent
(35) |
11 per cent
(53) |
||||||||
| It is the only way to watch the TV networks I want to watch | 18 per cent | 16 per cent
(86) |
23 per cent
(122) |
22 per cent
(121) |
||||||||
| It has better access to shows I want to watch | 18 per cent | 23 per cent
(126) |
11 per cent
(63) |
9 per cent
(50) |
||||||||
| It is worth the expense | 17 per cent | 16 per cent
(92) |
26 per cent
(151) |
4 per cent
(22) |
||||||||
| I want to watch live news | 17 per cent | 14 per cent
(79) |
30 per cent
(172) |
6 per cent
(37) |
||||||||
| I want to watch live programming when it airs | 16 per cent | 14 per cent
(87) |
21 per cent
(134) |
14 per cent
(89) |
||||||||
| I want to have a DVR service | 14 per cent | 9 per cent
(65) |
26 per cent
(185) |
12 per cent
(82) |
* To be read: Among Cord Nevers (ages 18+) who plan to subscribe to a traditional pay-TV service in the next 6 months, 27 per cent cite the ability to channel surf as a reason for subscribing