64% of U.S. households may lack interest in cable TV, according to a new survey conducted by The Trade Desk. Yahoo Finance's Alexandra Canal breaks down the impact on Yahoo Finance.

Video Transcript

ZACK GUZMAN: Meantime, I'm not sure if you caught the NFL draft last night, day one of the NFL draft, but things were a little bit different. It looked a lot more like our show here as we're all staying at home trying to flatten the curve. When you look at it, though, it might be impacting the way that Americans are rethinking their cable subscription, as live sports continues to be postponed.

For more on that, I want to get to Alexandra Canal for the latest in our Fame or Fortune segment. And Ale, I mean, a recent survey indicated that things are not looking good for a lot of Americans thinking about sticking with cable.

ALEXANDRA CANAL: Exactly. So it's no denying that streaming has ballooned amid the coronavirus, and according to a new survey by the Trade Desk, it could be impacting how some people are considering their cable subscriptions moving forward. So according to the survey, 64% of US households have either cut the cord, are planning to cut the cord, or haven't even subscribed to cable.

And if you break that down by age groups, those age 18 to 34, that number jumps to 74%. So if you think about it, only about a quarter of young US adults have any long-term interest in cable. So if you picture that media landscape 5, 10, 15 years from now, it's very possible that cable could become obsolete and the focus could remain on just online and streaming.

To further illustrate that point, of those that have cable, 11% said they plan to cut the cord by the end of this year, that number once again jumping for those age 18 to 34 to 18%. But these trends are only going to continue to accelerate as people remain stuck at home due to the coronavirus, and as you mentioned, live sports remain off the air because that's really important to cable subscribers.

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For example, 60% of those that were interviewed in this survey said that's the main reason that they even have a cable subscription. So as live sports remain off the air, it's going to convince more people to try out different services like Netflix, like Hulu, like Disney Plus. So it's clear that this pandemic is tilting in the favor of those streaming services.

Just take a look at Netflix's impressive earnings report. They nabbed 16 million subscribers in the first quarter of 2020. And considering a lot of businesses are struggling right now, they're able to capitalize on this moment, and they're doing just fine. And then cable just seems to be a little bit behind the eight ball here.

ZACK GUZMAN: Yeah, I mean, you raise a good point. When we look at those, those record subscriber ads from Netflix's latest quarter, it's still trading near all-time highs.

But when you think about it, they got to feed the beast. We did hear that they had most of their content in the can, but when it comes to Netflix maintaining that growth, it's going to require a lot of new content to come down the chute if people are chewing through all this content so quickly. So what are they doing on that front to make sure they can keep pace with their already record breaking pace here?

ALEXANDRA CANAL: Yes, they're still feeding the beast. If you remember back in 2018, Netflix and Ryan Murphy signed a massive reported $300 million deal over the next five years. And coming May 1st, Ryan Murphy will be releasing his second project for the platform. It's called "Hollywood." And it tells the reimagined story of a much more inclusive 1940s industry.

So they released the trailer earlier this week. It created a lot of buzz on Twitter. I have a little snippet from that that I want to play for you guys. So take a look.

- If you changed the way that movies are made--

- Coffee, Miss Lara?

- --I think you can change the world.

- I want you to be the star.

- Really?

- If you want something, you have to declare it.

- I'll do anything.

- I am not just a star. I am a star maker.

ALEXANDRA CANAL: Yeah, so you see there's a lot of familiar faces in that trailer, including Darren Criss, who has appeared in multiple Ryan Murphy productions in the past, such as "Glee" and "The Assassination of Gianni Versace." But what this show illustrates is Netflix's arsenal of content, talent, and resources. They said on Wednesday that they plan to raise an additional $1 billion to fund new programming, as well as acquire new content.

So they're really willing to put their money where their mouth is here. And that's going to help them win this streaming fight. We still have yet to see the emergence of some competitors. We'll see HBO Max make their grand debut in the streaming wars next month. But for now, Netflix is still the leader in this space. And they're still creating a lot of content that people are craving right now.

ZACK GUZMAN: Yeah, and at least the surge in subscribers making the cash burn a little bit better than we've come to expect, averaging about three billion a year, now down to just one with the surge in new subscribers. But Alexandra Canal breaking that down in our Fame or Fortune segment, thank you so much for bringing us that.