The seasonal deceleration in broadband subscriber gains did little to slow down broadband-only home growth in the period ended June 30, with the segment logging its second-largest quarterly net add since Kagan, a media research group within S&P Global Market Intelligence, began tracking it.
Across the residential broadband universe, pegged at 93.8 million at the end of the second quarter, a calculated 18.4% of high-speed data homes did not take any legacy multichannel offerings. That means that out of every 11 homes subscribing to broadband, roughly two of them went without a traditional video package. This compares to 12.4%, or two out of every 16 homes, a mere three years ago.
The trend underscores the evolution of the role of traditional multichannel video packages and broadband in the average U.S. household. Once virtually indispensable, with setting up access to "cable" one of the first steps taken when moving into a new home, multichannel is progressively being considered secondary to internet access.
Broadband, on the other hand, is increasingly seen as a necessity to run a modern household, bordering on utility status. Broadband made a smooth streaming experience possible, providing the fertile soil necessary for services such as Alphabet Inc.'s Youtube, Netflix, Hulu, and Amazon Video to sprout, grow, and blossom. Today the trend is upsetting a multidecade ecosystem.