The latest Cord Evolution insights reveal that roughly 31 million US consumers – 12% of the adult population – are Cord Nevers (CNs); that represents an increase over the 2017 level of 9%. With a median age of 33, the typical Cord Never’s average household income has risen by 27% over the last 2 years, from $41,500 to $52,800.
Among Cord Nevers, 27% -- about 8 million adults – say they plan to sign up for a pay-TV service in the next six months. Some 70% of these cord seekers say they will subscribe to a traditional (cable, fiber optic, or satellite) service, while 30% -- 41% 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. (See Table 1.) 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.”
MRI’s Cord Evolution research is based on roughly 24,000 in-person, in-home interviews in MRI’s Survey of the American Consumer®, asking about cord intentions. Cord Evolution research tracks levels of “cord disruption” (who is cutting, who is increasing) among 10 unique viewing groups, revealing the impact of new digital offerings on traditional cord subscriptions and linear behavior. This research measures not just what and how they are watching, but also the why’s behind their viewing and subscription choices.