Cord-cutters approach 7% of US TV population
DetailsRebecca Hawkes | 13 March 2015
While consumers watch more than 30 hours of video per week on average, the number of households planning to cancel their pay-TV service (potential cord-cutters) has also increased, reaching 7% of US broadband households with a pay-TV service.
That's the word from a Parks Associates report, Under Attack: Assessing New Threats to Pay TV, which notes that the new deal between Apple and HBO to stream the HBO Now streaming service to Apple devices is just the latest example of reasons why consumers will continue to cut the cord.
"The pay-TV industry is experiencing a slow crisis in terms of paying customers," said Brett Sappington, director of research at Parks Associates. "Content is key to attracting and retaining consumers, and consumers are now looking beyond pay-TV for that content."
He added: "At the same time, companies like Google and Amazon are getting into the content creation business, providing a new competitive threat to the traditional ecosystem. "
For consumers, the lines are blurring between CE makers, operators and content providers, so they will make their decisions, first and foremost, based on who has the desired content and secondly on who provides the easiest method to find and consume that content.
"Consumers have extensive content choices, including live TV, VOD, and OTT streaming, and they are using multiple interfaces to access desired content," said Barbara Kraus, director of research at Parks Associates.