08.24.2011 12:27 PM
Cord-cutting poses threat for traditional pay-TV services, says Centris
Cord-cutting — the act of cancelling traditional cable, satellite or IPTV pay-television subscription in favor of accessing shows and movies over the top — is a significant issue for pay-TV services in the United States, says the latest quarterly report from Centris on the evolution of the video market.
According to Centris, which accumulated data from more than 53,000 Internet household surveys, about 5 percent of U.S. households have cut the cord and are accessing programming online. The research also indicates that 0.8 percent of cord cutting was done because of content issues, while most was driven by economic decisions.
The research also reveals that 5 percent of Internet-enabled households are using a combination of over-the-top content and off-air television broadcast reception to meet their content needs.
A major battleground is developing in households that both subscribe to traditional pay-TV service and watch content online, Centris says. According to the research, 56 percent are using both sources to access video programming.
Centris attributes the ongoing market shift to the greater availability of broadband Internet service, greater Internet speeds and new enabling technologies.