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The cord-cutter generation is growing, and those who are ditching cable are drawing a line in the sand.

Most cord-cutters now say they will not pay a single dollar for premium standalone cable channels, such as HBO or Showtime, that do not require a traditional TV subscription, according to a new study from Morgan Stanley Research.

The study polled 2,501 cord-cutters in the U.S. and 58% said they would not pay for an HBO standalone service, compared to 60% for Showtime and 63% for Starz. Moreover, 13% of respondents said they would pay no more than $3 for an HBO service, compared to 15% for Showtime and 13% for Starz.

This data indicates a major problem for HBO, Showtime, Starz, and peer services, especially as subscription video-on-demand (SVOD) services such as Netflix and Hulu grow in popularity and take users away from traditional pay-TV.

Netflix leads all streaming services in terms of top content for the first time in the six years of Morgan Stanley's Online Video Study. The study asked which network or SVOD service has the best original content, and 29% said Netflix, compared to 18% for HBO, a 13% year-over-year decline.

Subscription rates among the major streaming service entities also seems to be slowing. HBO Now, the company's over-the-top (OTT) service, just neared one million subscribers in March, according to a statement from Time Warner CEO Jeff Bewkes. But analysts expected this to happen by the end of last year.

Netflix, meanwhile, is expected to report its smallest increase in new U.S. subscribers since 2012 during its first-quarter earnings call next week, reports Ad Age.

All of this data should particularly worry Starz, which debuted its own OTT service this month at $8.99 a month. That's the lowest price point among premium networks, but only 7% of those polled in the Morgan Stanley study said they would be willing to pay that much for the service.

The television landscape continues to shift as more consumers say no to traditional pay-TV packages. The ever-increasing selection of original content from Netflix and Hulu only makes the environment more complex.

Margaret Boland, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on subscription video on-demand services that examines how the growth of SVOD is coming at the expense of the pay-TV industry. The report analyzes the state of the pay-TV industry and maps out which demographics are more likely to stop buying traditional TV packages.

The report also discusses the user base, original content offerings, and subscription models of the major subscription streaming services available today, including Netflix, Hulu, and Amazon Video. Finally, it looks at how traditional pay-TV companies and premium channels like HBO and Showtime are addressing the shift to digital viewing, as well as the implications of their response for advertisers.

BI Intelligence

Here are some of the key takeaways from the report:



Those abandoning pay-TV packages fall into three main groups: cord-nevers, cord-cutters, and cord-shavers. Whereas video streaming services have found favor with younger viewers in particular, an increasing portion of older subscribers also are leaving behind their pay-TV packages. Still, younger viewers watch four times as much video content online than older viewers.

Netflix is the largest SVOD service and will continue to dominate the industry with an impressive original content lineup and aggressive expansion plans.

Amazon is trying to compete with Netflix by investing significant resources in original content.

Hulu is the third-largest SVOD service, but the only one to offer ad-supported membership tiers. Hulu has been the slowest to roll out original and exclusive content, but it has inked numerous deals in the past year to boost its content library.

Pay-TV companies are responding to the rise of SVOD services by offering subscribers "skinny bundles" and their own streaming services.

In full, the report:

Illustrates the fall of the traditional TV package and the rise of broadband only cable subscriptions.

Lays out the different types of viewers that are leaving behind pay-TV: cord-cutters, cord-shavers, and cord-nevers.

Examines the leading SVOD services including Netflix, Amazon Prime Video, Hulu, and premium channel offerings from HBO and Showtime.

Explains the various ways that pay-TV companies are responding to the rise of SVOD services, notably skinny bundles and standalone streaming services.

Considers what the migration to SVOD services means to marketers.

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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of subscription video on-demand services.