New Parks Assoc. study finds 13% of U.S. broadband households slashed their cable bill in the past 12 months, with another 9% cutting back going forward
Cord-cutting, the buzz term downplayed by cable and satellite TV operators to describe subscribers who downsize or sever their monthly bill in favor of cheaper over-the-top services such as Netflix
, is picking up momentum, according to a new report.
Dallas-based research firm Parks Associates, in a blog post, said 22% of respondents in a recent survey have, or will scale back their monthly cable bill, including 3.9 million people who said they watch Internet-based video entertainment.
These subscribers typically spend about $20 month on video services and watch an average of about 4.2 hours Web-based video on their HDTV
a week. Indeed, Comcast
and Time Warner Cable reported a combined loss of 300,000 video subscribers during their most-recent fiscal reports...
...Meanwhile, the firm said efforts by media companies and cable operators to retain subscribers through TV Everywhere platforms will be ineffective going forward.
Specifically, Parks said just 11% of subs, or 6.5 million households, would be willing to pay a premium of no more than $15 for ubiquitous access to content through TV Everywhere. It suggests TV Everywhere proponents entice subs through no-frills packages.