30% of Existing US Pay TV Households are Potential Video Cord Cutters

dkreichen1968

Moderator
Staff member
#1
From The News Release:
"A substantial portion of Pay TV subscribers, however, exhibit similar characteristics to video cord cutting households," says Keith Nissen, Principal Analyst. "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 channels.
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.
Read More: 30%25 of Existing US Pay TV Households at Risk of Future Video Cord Cutting, Says In-Stat
 

MrPogi

Moderator, , Webmaster of Cache Free TV
Staff member
#2
Total US pay TV subscribers remained flat, growing by only some 148,000 during 2010, a 0.15% annual growth rate, indicating no current trend toward video cord cutting/shaving, according to In-Stat (www.in-stat.com).
The United States Census Bureau shows population increases ranging between 0.85% and 0.89% for the twelve-month periods ending in 2009. That's a difference of about .70 - .75 percent.

So, despite their best attempts to deny the trend, pay TV is actually losing customers as a percentage of the population.
 

dkreichen1968

Moderator
Staff member
#3
It's Price To Value Stupid!!!

From The Article:
That is one reason there is growing nervousness in the multichannel TV business. “A substantial portion of pay TV subscribers...exhibit similar characteristics to video cord cutting households,” said Keith Nissen, In-Stat (News - Alert) principal analyst. Another way of looking at matters is that most people think prices are too high, relative to the value they receive.

Video distributors keep saying the value is to be found in the hundreds of niche choices now available. Consumers nearly always complain that they don't watch those channels. In fact, virtually all studies suggest that most viewers regularly watch a handful of channels, out of the hundreds they can watch. As prices keep rising, the disconnect will widen.
Read More: How Different are Video Cord Cutters?
 

SteveZ

DTVUSA Jr. Member
#4
I was in a building last week connecting several new residents to the building antenna system. As I entered the 5th floor electrical closet, I ran into a cable television service tech disconnecting several residents from cable TV service.

And so as the world turns.......
 
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