Video viewing has reached a tipping point, according to a new report from Samba TV, a provider of analytical software underlying video services.

More than half of U.S. households didn’t have a linear video subscription as of the third quarter of 2022, according to the report. That was the lowest number recorded during the previous seven quarters.

The research was based on a survey of over 2,500 adults and was conducted from August 29 to September 1, 2022.

Video Viewing Report

Less than half of U.S. households – about 55 million – watched linear television on a daily basis during the second half of 2022, according to the research. That number was down 2% from the same period a year earlier.

The number of hours spent watching linear television declined 4% between the third quarter of 2021 and the third quarter of 2022, according to the researchers.

This is something to which advertisers must react, the report advises.

“Overall, these shifts away from linear highlight the challenge advertisers face in reaching viewers via traditional platforms, with many viewers cutting the cord and shifting their attention to streaming platforms,” the report said.

The trends are the most pronounced among younger viewers. Nearly two thirds of Gen Z respondents have no linear video subscription and 58% of Millennials also forego linear video. The percentages for Gen X and Baby Boomers were 57% and 43%, respectively.

More than 80% of Gen Zers and Millennials use stream video.

The market will grow even more complex, the report notes.

“The competition for attention is intensifying as more consumers shift viewership not just from linear TV to streaming, but between streaming services at will,” the researchers said.