317-289-4965The cable television industry in the United States is expected to witness a $30 billion fall in traditional pay-TV subscriptions and ad revenue compared to 2017 due to user cord-cutting.
The cord-cutters cited the high costs of traditional cable TV subscriptions as the significant reason to switch to streaming services. Over 80.7 million households in the United States are projected to use non-pay TV services by 2026.
Let’s take a detailed breakdown of the number of cord cutters in the United States, reasons for cord cutting, consumer behavior, the impact of cord cutting, and more in this article.
Cord Cutting Statistics
- 59.6 million households in the United States are estimated to have switched to non-pay TV.
- 68.7 million people in the country still have a subscription to Cable TV.
- 86.7% of the people reported cutting the cords due to the high price.
- Pay TV revenue decreased from $100.09 billion in 2017 to $86.21 billion in 2022.
- YouTube TV is the most-watched virtual multichannel video programming distributor (vMVPD) services in the United States, with 7.9 million subscribers in 2023
From 2017 to 2024, there’s been a noticeable and steady drop in the number of Cable TV users in the United States. The rate of decline varied each year, hitting a high of 5.4% in 2019 before leveling off around 5%.
This trend clearly shows that more and more people are moving towards video streaming services, reflecting changing preferences and the growing influence of digital media on viewing habits.
Why Do People Cut The Cord?
86.7% of the people reported cutting the cords due to the price.
The majority of people worldwide are cutting cords to save money, as paying for traditional TV is quite pricey compared to buying other subscriptions.
The second majority, or 2 in 5 cord-cutters, stated that the main reason they removed traditional TV cable was their preference for streaming, while 23% said that they were switching to antennae TV.
Conversely, 7.7% of cord-cutters said they prefer to watch original content on streaming services over other content. 
What is the difference between OTT and Connected TV?
As advertising evolves, marketers face growing confusion between OTT (Over-The-Top) and CTV (Connected TV) advertising. While often used interchangeably, these two terms represent distinct facets of the streaming ecosystem, each with unique advantages for brands.
Understanding these differences is key to leveraging their potential effectively and reaching consumers where it matters most. In this article, we’ll identify the key differences between OTT and CTV advertising, breaking down how each can elevate your performance marketing strategy.
What is Connected TV Advertising?
CTV advertising refers to a method of advertising that targets viewers watching TV content via an internet-connected device such as a smart TV, gaming console, or streaming device. Think of connected TV as the device used rather than the content delivered.
With the rise of cord-cutting and the popularity of streaming services, connected TV advertising has become an increasingly important channel for marketers looking to reach consumers in a fragmented media landscape.
What is OTT Advertising?
OTT advertising, or over-the-top advertising, is a method of delivering video content to viewers over the internet. In other words, it’s more so referring to the method of content delivery rather than the device.
To put it another way, OTT refers to content that goes “over” your cable box to give you access to TV content using an internet connection instead of a cable cord or satellite by traditional broadcast providers (hence the term ‘cord cutters’, which we talk about in a lot of our content).
What Is the Difference Between OTT and CTV?
OTT and CTV are often used interchangeably but there are subtle differences between the two, as outlined below:
- OTT is the method of delivery that streams content across all devices such as mobile and desktop.
- Connected TV is the device used (usually a smart TV) to view the OTT content.
When it comes to viewing content on connected TV, this can be done in two ways:
- Regular TVs connected to multimedia devices like Roku, Apple TV, Amazon Fire Stick, and Chromecast, which allows you to view OTT/CTV content through the Internet.
- Regular TVs with in-built internet connectivity, like Smart TVs.
OTT content can be accessed on TV, but on any device that has an internet connection, like mobiles, desktops, tablets, and laptops. We prefer viewing this content on TV because it supports a higher-quality viewing (and advertising) experience.
If you’re still a little confused by the OTT/CTV definition, you can also think of providers like Hulu, Netflix, Amazon Prime Video, and Roku, where all you need is WiFi to connect to your favorite TV shows and you’re good to go.
Benefits of CTV and OTT Advertising
This is where we get to the good stuff! CTV and OTT are more than a trend—they’re a marketing revolution. Here are just a few of the primary benefits of this type of advertising:
- Targeted advertising: Advertisers can deliver ads to specific households based on their demographics, interests, and viewing habits. This makes it more efficient than traditional TV advertising, which is less precise in its targeting.
- High viewability: Ads are unskippable and can be seen in full-screen mode, resulting in higher viewability rates compared to other forms of digital advertising.
- Brand safety: OTT and CTV platforms offer a safe advertising environment, with little risk of ad fraud or brand safety issues.
- Cost-effective: CTV and OTT advertising are often more cost-effective than traditional TV advertising, as they can reach the same audience for a lower cost. Additionally, advertisers can avoid paying for ads that do not reach their intended audience.
- Better engagement: This type of advertising allows for better engagement, as viewers are more likely to watch an entire ad when it is delivered through OTT devices. Additionally, OTT ads can be interactive and provide a better user experience than traditional TV ads.
- Measurable results: OTT and CTV advertising provides measurable results, allowing advertisers to track the performance of their ads and make data-driven decisions. This makes it easier to optimize campaigns and improve ROI (return on investment).
- Flexibility: CTV and OTT advertising allows for flexibility in ad placement and timing, as well as the ability to customize ads for different platforms and devices. This means that advertisers can reach their audience at the right time and place with the right message.
- Reach: With the popularity of free ad-supported streaming services, businesses can reach a large audience, including cord-cutters and younger viewers who may not be reached through traditional TV advertising.