Part 1: What Drove the Exodus from Traditional TV and What's to Come?
Over the last half-decade, American television hasn't just undergone a “reimagining”, TV as we know it has been completely re-engineered. Because what started as an industry slow to budge from its cable and satellite roots has, by 2025, pivoted almost entirely to an ecosystem defined by streaming, control, and a relentless pursuit of value.
Between 2017 and 2022, pay-TV revenue dropped by $13.88 billion (Source). In kind, cord-cutting has resulted in more than a 20% decline in pay-TV, the majority of which took place during the initial breakup with convention models (from 2014 to 2023). And in comparing the two experiences today, cord cutters pay an average of $70 less per month than cable customers who are paying an average of $147 per month (source), an obvious financial motivation to accompany the control of everything-on-demand. So where we once endured hulking cable bundles and long-term contracts, the default posture today is flexibility: watch what you want, when you want, on the device you choose.
This multi-part retrospective explores how we got here, what shaped the mass migration from traditional pay TV, and how the next chapter of scaled streaming adoption will reshape the industry all over again.
Where We Were: The Legacy Grip of Pay TV
In 2020, roughly 77.5 million U.S. households still hung onto traditional pay TV - the last era of appointment viewing and channel bloat. But the cracks were visible: real frustration with escalating bills for dozens of under-watched channels, and a parallel, scrappier world of streaming that offered upstart competition.
Fast-forward five years, and those pay TV numbers have tumbled to 56.8 million, with the fallout hitting industry revenue to the tune of $33.6 billion.
Cost vs. Value: The Economics of Choice
Cord-cutting in the 2020s wasn't a subtle bucking back, it was simple math for an increasingly cost-conscious consumer. Traditional cable packages felt bloated, with dozens of channels no one watched and prices that kept climbing. Combined with stubborn cable bills, unwilling to meet customers where they were (navigating a global pandemic and economic uncertainty), and the perfect storm for value-driven alternatives offering flexibility was created.
Platforms like Netflix and Hulu had matured from their humble roots (CDs in the mail or streamed via desktop browser) to offer personalization and purse-friendly models, while Sling showed you a new way to channel-surf. Originally, it was “high cable prices” that drove a significant majority of cord cutting opting for flexible pricing structures vs long-term contracts.
Today, this migration is reflected in just how central streaming has become: by 2025, streaming commands more than 50% of all TV viewership, leaving cable (23.4%) and broadcast (18.5%) in the rearview.
The Technology Tipping Point
Behind the streaming surge is a relentless march of technology. By 2023, sky-high broadband penetration and the rise of smart everything from phones to TVs, even refrigerators had all but erased the barrier to entry. Smart recommendations, voice search, and near-instant access now shape the experience and are powered by AI? A whole new world.
Recent research revealed that the average American spends more than 12+ hours on digital media daily, with no less than four hours a day dedicated to streaming media. High-def, low-latency, mobile-first tech is standard and the arms race has already begun for a 6G-connected world. The widespread availability of high-speed connectivity will only continue to accelerate streaming adoption, turning every connected device into a potential entertainment portal.
This transformation is forcing telecom service providers to fundamentally rethink their approach to customer acquisition and retention. Increasingly, major telcos are pivoting toward comprehensive streaming bundles - packaging high-speed internet with multiple streaming services to create compelling value propositions that lock-in subscribers. What we are witnessing is an entire evolution of telecom giants repositioning themselves as digital entertainment aggregators by leveraging their network infrastructure to offer seamless, integrated streaming experiences that competitors will continue to struggle to match. (Source)
The Generational Shift: Mobile-Native Habits Take Hold
Today's audiences, especially younger generations, prefer content that fits their lifestyle, opting for mobile -first viewing, binge-watching, and personalized content experiences.
They favor platforms that offer both ad-supported and ad-free options, giving them greater control over their viewing experience. In fact, 84% of users prioritize cost, 81% seek ease of use, and 79% demand variety in content. Making the ability to toggle between ad-supported and premium experiences, while moving across screens on their terms, the new baseline for making happy customers.
COVID's Streaming Surge: The Accidental Accelerator
When the world paused in 2020, streaming sprinted ahead: as demand for at-home entertainment soared, subscriber bases mushroomed, and content launches accelerated. The pandemic handed streaming platforms rocket fuel. With people spending more time at home, streaming platforms responded with a wave of new content and features, further highlighting their advantages over traditional TV and widening the gap.
Studios shortened theatrical windows, released tentpoles straight to digital, and streaming platforms saw their new-user projections double and in some cases, triple. Internet infrastructure experienced its toughest stress test with families at home, multiple devices fighting for bandwidth, but the streaming model's inherent flexibility turned this moment from crisis to opportunity.
Looking Ahead: From Replacement to Reinvention
Today, the market is mature. With 118M U.S. households tuned in to live sports on streaming this year, it has become the de facto way we watch television and with that, the return of bundling. But this time? It is digital-first, flexible, and designed for maximum consumer value in a competitive battle for market share.
To learn more about The Basics of Bundling, please read my recent article linked just below my closing thoughts.
Final Thoughts (For Now)
The decline of traditional pay TV is the result of a perfect storm: rising costs, evolving technology, shifting viewer habits, and a growing appetite for flexibility. What started as a cost-conscious exodus has indeed become a movement toward personalization, control, and ecosystem-driven experiences that prioritize convenience, customization, and value.
As we move into the second half of 2025, into 2026 and beyond, the next battlegrounds won't be about who has the most content. Rather, it will be about who can make that content feel the most effortless, the most valuable, and the most human. The future of television lies in platforms that understand this fundamental shift from appointment viewing to algorithmic curation.
In Part 2 of this series, we'll explore what comes next: how AI, immersive technologies, and new monetization models are reshaping streaming's future—and why the industry's next chapter will be defined by personalization, interactivity, and the creator economy.
Until Part 2, please enjoy my recent work on “The Basics of Bundling”
