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Down Grade: Broadband Adoption Linked To TV Cord Cutting

August 23, 2011

Dallas-based researcher Parks Associates says 13% of consumers who have broadband connections have made cutbacks within the last 12 months -- with another 9% to come. The study says this includes some 3.9 million people who regularly watch Internet video.
The study says 22% of all broadband households now use the Netflix Watch Instantly service. Also, it was suggested that set-top box distributors find a way to include YouTube, the digital video service, which is already being include in many Internet-connected TVs on the market.

The reports says "TV Everywhere will be an ineffective retention tool." The data suggests 11% of all pay-TV households, or 6.5 million homes, would pay an extra $15 a month. Many consumers view TV Everywhere as a "premium package."

The study suggests "TV Everywhere" providers will see gains if many offer no-frill packages.

Park Associates notes that nearly 50% of all flat-panel TVs sold in 2011 will be Internet-connectable and about two-thirds of U.S. broadband households will have a video-game console connected to the Internet. Consumer sales of Internet-connectable TV devices will go to nearly 350 million units worldwide by 2015.

From the article, "Down Grade: Broadband Adoption Linked To TV Cord Cutting" by Wayne Friedman

Previously In The News

Phone, Cable Companies Advised To Bundle More Services

Adding services to "triple-play" bundles could boost monthly revenue per subscriber to $206 by 2010 from $148 today, Parks Associates said. Additional services could include TV-based caller ID and h...

The Digital Home Brings A Digital Headache

Based on the survey findings, Parks Associates estimates that in the last 12 months, more than 41 million U.S. Web users had Internet security problems, more than 21 million had computer hardware an...

Social Networks Becoming A Prime Target For Online Video

Fully, 55 percent of users of the Web hangouts watch streaming videos, and 21 percent download video, Parks Associates said. In addition, people who visit these sites at least once a week are six ti...

Microsoft Entices Holiday Shoppers With 250 Vista-Ready Product,

"There's no precedent in my mind," Harry Wang, research analyst for Parks Associates said. The closest comparison would be the TV industry, Harry Wang said. Manufacturers selling analog sets toda...

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