Cord Cutting, in the Form of Broadcast-Only Service, Is Growing

GfK Media now suggests that the number of U.S. households opting for over the air broadcast service is growing a bit faster.


"In 2012, we see homes with broadcast-only reception increase at a statistically significant level (two percent or more) for the first time in over five years," GfK Media says.


In fact, some 17.8 percent of TV homes report broadcast-only reception, compared with levels of 14 percent to 15 percent levels seen over the last five years.


That means that around 21 million homes rely only on over-the-air broadcast rather than a subscription TV service.


And broadcast-only levels are even higher among minority and lower-income homes, as well as with younger householders; all have seen an increase in broadcast-only reception in the past year, GfK Media says.


"Our data show that only one third of broadcast-only homes actually did cut the cord – they cancelled pay TV service at their current household - and only one sixth of those broadcast-only homes report some type of online service connected to their TV set," says Allan Fromen, GfK Media VP.


In other words, 66 percent of the new "broadcast only" users were not formerly cable, satellite or telco TV customers. 


About a third of the new broadcast-only users formerly had a subscription TV service, and more than 70 percent of those consumers said cost-cutting was the reason they abandoned subscription TV service.