Top Stories
Top Stories
Tech

Cord cutting is accelerating thanks to Hulu, not Netflix, analyst says

Key Points
  • "What really stood out to us was that [cord cutting] was most pronounced among Hulu subscribers," Corey Barrett, a senior media analyst at M Science, told "Power Lunch" on Friday.
  • The study found that Netflix subscribers eliminated their cable package at similar rates to the average consumer, while Hulu members saw a higher rate of cord-cutting.
VIDEO4:0004:00
Expert: I don't think the idea that cord-cording is accelerating is a surprise

Hulu, not Netflix, appears to be driving the recent increase in cord-cutting, according to Corey Barrett, a senior media analyst at M Science.

Cord-cutting, long said to represent the demise of cable companies, is when customers eliminate paid TV from their service provider bundle. Barrett said a recent study from M Science shows the trend is on the rise.

"What really stood out to us was that [cord-cutting] was most pronounced among Hulu subscribers," Barrett told "Power Lunch " on Friday. "There's a misconception that Netflix is actively driving cord-cutting behavior."

The study found that Netflix subscribers eliminated their cable package at similar rates to the average consumer, while Hulu members saw a higher rate of cord-cutting.

The findings also identified Charter Communications as potentially a victim of the practice, "relative to Comcast, " according to Barrett.

He called the practice "a generational shift" and warned disruption could grow in the coming years thanks to more nontraditional firms entering the field.

"As a function of that, you have players coming from outside the existing pay-TV ecosystem that are likely much more disruptive to the current ecosystem and drive heavier cord-cutting than what we've seen," Barrett said.

Disclosure: CNBC parent company NBCUniversal is an investor in Hulu. Comcast is the owner of NBCUniversal, the parent company of CNBC and CNBC.com.

WATCH:  Streaming wars will be won or lost by viewer experience and content -Hulu CEO
VIDEO4:3204:32
Hulu CEO: Streaming wars will be won or lost by viewer experience and content