Cord-Cutting
The trend of consumers canceling traditional cable or satellite TV subscriptions in favor of streaming services.
Definition
Cord-cutting refers to consumers abandoning traditional pay-TV subscriptions (cable or satellite) in favor of internet-based streaming alternatives. This shift has accelerated dramatically, fundamentally disrupting the media ecosystem that funded content creation for decades.
The trend reflects changing viewer preferences for on-demand content, lower costs, and flexibility—though rising streaming prices and subscription fatigue have created new dynamics.
Why It Matters
Cord-cutting has reshaped the economics of television production and distribution. Traditional networks face declining audiences and advertising revenue, forcing adaptation to streaming models and direct-to-consumer strategies.
Understanding cord-cutting trends helps entertainment professionals anticipate distribution opportunities and challenges as the industry continues its transformation.
Examples in Practice
Pay-TV subscriptions in the US have fallen from over 100 million to under 70 million households over the past decade. Disney's launch of Disney+ reflected their strategic response to cord-cutting, pivoting from licensing content to owning the customer relationship.
Some analysts predict "cord-never" generations who will never subscribe to traditional pay-TV, making streaming the default distribution model for future audiences.