Study: Few Viewers Will 'Cut the Cord'
Washington, D.C. (November 30,
A new Frank N. Magid study says most Americans have no intention
of dropping their cable or satellite subscriptions in favor of
alternative video services such as Netflix, Hulu or instant
In fact, the Magid study found that the consumers who most use
alternative video services spend the most money on traditional
pay TV services.
The findings contradict a growing sentiment among tech officials
and some tech journalists that millions of Americans will soon
'cut the cord' -- drop their expensive cable and satellite
subscriptions and sign up for less expensive video services such
as Netflix or Hulu.
finding appears to undermine the view that the use of
alternative video viewing platforms will compel consumers to
become "cord cutters," en masse, by canceling their television
subscriptions. In fact, the study shows that alternative video
viewing platforms should be considered additive to traditional
subscription television," the Magid study states.
The study also found that:
*40 percent of consumers are watching TV shows and movies online
using a laptop or computer at least occasionally
-- and another 10 percent are
interested in doing so. The numbers rise when respondents were
told they could watch the Net-enabled video on their TVs; some
new devices such as Roku and Apple TV will stream movies and TV
shows directly to television.
* Only one percent of consumers have cancelled their pay TV
subscriptions in favor of accessing content on the Net and only
2.5 percent use Net content exclusively.
* Only three percent of consumers say they are even considering
canceling their pay TV subscriptions without replacing them with
a competing pay TV provider.
* The purchase of DVDs are most at risk from alternative video
* Eight percent of consumers are 'very likely' to purchase a 3D
TV in the next 12 months. If that holds up, Magid says roughly
five percent of households will have a 3D TV by the fall of
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