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Hulu users most likely to cut the pay-TV cord 03 August 2017


As per a research from the Diffusion Group, Hulu users are most likely to abandon traditional TV for video on demand streaming options that the service provides as compared to other subscription video-on-demand services when it comes to TV.

Hulu’s on-demand users were 37% more probable than Amazon Prime users and 29% more likely than Netflix users to cut the cord on pay-TV in favor of streaming.

2/3rds of Hulu users that also subscribe to traditional pay-TV service would prefer to stick with their SVOD service if forced to choose between pay-TV and SVOD.

This number which is higher than tallies of both Netflix and Amazon Prime dual-service users (52% and 49% respectively) and 57.4%/42.6% for all dual-service users.

Only a third of Hulu dual-service users chose legacy pay-TV when compared to 48% of Netflix users and 51% of Amazon Prime users.

Hulu could have an advantage when it comes to converting its SVOD users to Hulu Live TV subscribers.
This trend of increasing number of Hulu users being cord cutters of pay-TV depends on whether it is because of a preference for watching TV shows on-demand v/s live or due to a high quality of experience above and beyond on-demand functionality. If it is due to the former, converting SVOD users to live TV subscribers will be quite challenging for Hulu. If the reason is due to the latter, then chances of conversion go up considerably, especially if Hulu can somehow bring about an integration of live and on-demand that surpasses the incumbent and virtual multi-channel video programming distributors (MVPDs).

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