04.18.2011 11:00 AM
In-Stat: One-Third of U.S. Pay TV Households May Yet Cut Cords
SCOTTSDALE, ARIZ.: Market
researchers at In-Stat say that nearly a third of U.S. households now paying
for TV may opt out, or at least down, in the future. Pay TV subscriptions have
leveled off, they said, growing just 0.15 percent over 2010. The figure
indicates “no current trend toward video cord cutting/shaving,” i.e., the
elimination or reduction in services.
“A substantial portion of pay TV subscribers, however, exhibit similar
characteristics to video cord-cutting households,” In-Stat’s Keith Nissen said.
“It is important to track these ‘at-risk’ subscribers, rather than the pay TV
subscriber base as a whole. In general, our new data confirms that adoption of
online video is growing. But, except for Netflix, the frequency of use is not
expanding. This is largely because consumers are going to online portals to
view specific TV and movie content. The frequency of viewing online video will
probably not increase until ‘must-see’ original online programming takes hold.”
Updated research found the following:
~ Cable operators lost 2.5 million subscribers, but satellite and telco
operators made up the difference.
~ Neither age nor household income appear to impact pay TV video cord cutting.
~ More households added premium channels during 2010 than dropped premium
~ Cable sports is valued significantly less than on-demand access to TV content
or premium TV channels; more sports will not protect against cord cutting.