Nielsen Finally Realizes That TV Viewers Are Cord Cutting, Calls It 'Interesting Consumer Behavior'

from the we-want-to-keep-an-eye-on-it dept

For many years we've written stories about the TV industry being in complete denial over cord cutting (i.e., getting rid of pay TV). The industry has denied that anyone was doing this, claimed that it was just a minor blip during a recession, suggested that when kids "grew up" they'd go back to subscribing to cable, and used a variety of other means of perpetuating their denial. Instrumental in this has been Nielsen, the TV rankings people, who is closely aligned with the industry in propping up the facade. So it's pretty hilarious to watch Nielsen start to finally acknowledge that cord cutting is real, but to do so (1) so late into the game and (2) in such a condescending manner, that's clearly designed to blast out the message to TV execs (i.e., Nielsen's clients): "DON'T WORRY, EVERYTHING WILL BE FINE. REALLY."

It's true. Most people watch TV in their living rooms using traditional cable or satellite options. In fact, more than 95 percent of Americans get their information and entertainment that way. But as we explored what the other 5 percent are doing, we found some interesting consumer behaviors that we want to keep an eye on.

They treat it like they've discovered a brand new species, Contentus Withoutus, and it exhibits "interesting behaviors" which "we want to keep an eye on." Interesting behaviors like... not paying $100+ per month for pay TV just so they can watch two channels? Perhaps.

This small group of video enthusiasts is tuning out traditional TV — and the trend is growing. This "Zero-TV" group, which makes up less than 5 percent of U.S. households, has bucked tradition by opting to get the information they need and want from non-traditional TV devices and services.

And there, right there, is the actual admission that those of us who have cut the cord and have no intention of going back are not a myth and are actually "growing" in numbers. Still, they describe us as having "bucked the tradition" rather than being part of a larger trend that is accelerating rapidly.

From there, the focus is on how those of us who cut the cord, still watch TV (i.e., "breathe, Mr. TV exec, they don't all just hang out on Reddit talking to each other each day").

According to Nielsen's Fourth-Quarter 2012 Cross-Platform Report, the U.S. had more than five million Zero-TV households in 2013, up from just over 2 million in 2007. These households don't fit Nielsen's traditional definition of a TV household, but they still view video content. The television itself isn't obsolete, however, as more than 75 percent of these homes still have at least one TV set, which they use to watch DVDs, play games or surf the Net. When it comes to video content, a growing amount of these households are using other devices.

All in all it's a small admission, done in a condescending way in which they pretend this is some strange abnormal behavior, which needs to be observed but shouldn't worry TV execs yet. This, by the way, is classic bad advice for those facing disruptive changing markets. "Oh, don't worry about those people who have found something better and who are dropping your service in six figure chunks each quarter. We'll just observe them and be ready to act later."