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Study: Few Viewers Will 'Cut the Cord'
By Swanni

Washington, D.C. (November 30, 2010) -- 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 streaming.

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.

This 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 services.

* 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 2011.

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

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