Editor | 09-08-2013
In what may alarm the pay-TV industry, new research from The Diffusion Group has shown that connected TV users are more inclined to cancel services than traditional users.
Even though TDG's Net-Connected TV User Dimensions report found that the vast majority of adult broadband users that currently subscribe to a traditional pay-TV service have little or no interest in cancelling their contract, smart TV owners were twice as likely as those with non-net-connected TVs to be "highly inclined" to cancel their current pay-TV service.
The analyst added that though on average just 7% of all viewers are would-be cord-cutters highly likely to cancel in the next six months, such an attrition rate should be of concern to operators as this would represent a rate of decline that was simply unsustainable, should these inclinations play out in the marketplace. The data revealed that 8.8% of connected TV users were highly inclined to cancel their current pay-TV service in the next six months, compared with only 3.5% of non-net-connected TV users.
That such a notable correlation between cord-cutting and connected TV exists should be of no surprise, and indeed is likely to grow more strongly in the next few years, commented Michael Greeson. "TDG has argued for several years that this relationship would develop over time and hit an important landmark moment of sorts in 2013. That is indeed what has transpired, and now the pay-TV industry and prominent analysts are coming to terms with the fact those with access to online video sources on their TV are more likely than their counterparts to be reconsidering the value proposition of incumbent pay-TV services," he added.