Yes, Streaming TV Really Can (Eventually) Replace Cable

The cord-cutting movement is still very much alive, but that doesn't necessarily mean consumers are subscribing to more and more streaming services like Netflix or Hulu, from Walt Disney. The average number of subscription video on demand (SVOD) services that U.S. households tap into was -- before COVID-19, anyway -- holding at just under three. Likewise, some households are willing to spend as much as $30 per month on streaming video services, but a wide swath of consumers are staunchly limiting their video subscription budget closer to $20 per month.

End result? More than half of all U.S. homes still enjoy traditional cable, even if they also subscribe to at least one over-the-top streaming service, according to Leichtman Research Group. Access to sports and local news are a key reason consumers continue to pay steepening cable bills. Indeed, these two may be the only reasons TV watchers tolerate their cable company's prices.

In that vein, what if cable companies like Comcast (NASDAQ: CMCSA) and AT&T (NYSE: T) have overestimated the strength of their hold on their television customers in the new era of streaming?

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Source Fool.com