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Broadband-only households are set to grow from 19.0 million in 2017 to 37.2 million by 2022, according to estimates from Kagan, a media research group within S&P Global Market Intelligence.
A perfect storm of long-term trends including increase in streaming content suppliers, widespread utility-like status of broadband, and a demographic shift attributable to shrinking baby boomers and rising millennials, is yielding higher broadband-only home gains than initially anticipated, prompting a significant upward update for our projections, said Tony Lenoir, Senior Kagan Research Analyst at S&P Global Market Intelligence.
Kagan expects 38.4% of the combined residential cable and telco wireline broadband subscribers in 2022 to eschew legacy multichannel distribution and rely mostly on a combination of broadband and over-the-air broadcast signals for home video entertainment. Additional takeaways from Kagan's broadband-only home outlook:
Kagan expects broadband-only homes, or households without a traditional multichannel video package but a subscription to wireline broadband, to rise at a 14.4% compound annual growth rate from 2017 to 2022.
Broadband-only homes are set to take up 29.2% of U.S. occupied households by 2022. Kagan expects traditional multichannel penetration to be in the low 60% range at that time.
Operators that offer video as well as broadband may be in an advantageous position. By 2020, cable will count more than 70 million broadband customers. The sectors video subscriber count peaked at 67.1 million in 2001.
The full report is available to media upon request. To see additional research from Kagan, please click here.
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About S&P Global Market Intelligence
At S&P Global Market Intelligence, we know that not all information is important-some of it is vital. Accurate, deep and insightful. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities globally can gain the intelligence essential to making business and financial decisions with conviction. S&P Global Market Intelligence a division of S&P Global (NYSE: SPGI), provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spglobal.com/marketintelligence.
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