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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

Dish, Whirlpool Partner With Amazon Devices

Today, 40% of smartphone owners already use digital assistants, according to a recent survey conducted by Parks Associates. Millennials are most likely to partake (46%), but -- as the technology co...

The Universal Problem With TV Everywhere

"I've had conversations with DirecTV, who said they are reluctant to spend money marketing a free service," said Brett Sappington, director-research at Parks Associates, a market-research and consu...

Roku Benefits From Streaming's Rise

More than a fifth (21%) of U.S. broadband households with a connected electronics device are using it for streaming media, up from 12% last year. Moreover, usage of connected gaming consoles and DV...

Netflix, Newbies Among Top OTT Services

According to estimates from Parks Associates’ most recent “OTT Video Market Tracker,” the top video streaming service (based on number of subscribers) is Netflix, followed by Amazon Video and Hulu....

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