Boxee Adds a Second Target Buyer
Though Boxee has been targeting residential customers who are “cutting the cord” to conventional cable services and satellite subscriptions, it announced last week that it would add cable operators who may be considering eliminating program costs and shifting their focus to selling just high-speed Internet access. Read more
Mobile VoIP to Triple in 2012
For many years now consumers have been cutting the landline cord, replacing traditional, landline voice minutes with other offerings such as stand-along VoIP, Internet-calling packages and wireless phones. Not surprisingly, with the increased penetration of smartphones, wireless subscribers also are starting to decrease their traditional calling minutes.
In a new report released last week, In-Stat predicts that mobile VoIP minutes will triple this year, growing from 9 million in 2010 to 29 million. The research firm also predicts that revenues associated with mobile VoIP usage will increase to more than $4 billion in 2015. Of note, LTE operators are not likely to have a significant impact on the mobile VoIP market until 2013.
Wireless providers are aware of the impending revolution, as they move to make changes to their offerings such as eliminating unlimited data and creating new fees for services.
6 Million U.S. Customers Use Wireless-Only for Broadband
A new research report from Strategy Analytics finds that more than 6.05 million U.S. households will depend on a wireless or mobile platform (including 3G or 4G) as their only means of accessing the Internet.
According to the report, this represents 6.9% of total U.S. broadband connections, and a 430,000 net increase over 2010 levels. These “mobile-only” customers typically connect to broadband using 3G or 4G-enabled smartphones or PC dongles, and are unable or unwilling to use a wired broadband service such as cable, DSL or fiber. Read more
OTT Prediction
According to a survey sponsored by MagnaGlobal, a U.S. media agency, up to 10% of U.S. homes could be using over-the-top (OTT) services as their primary video delivery in the not too distant future. In MagnGlobal’s estimate, by 2016 as many as 9 million homes could be using services available for free or at low cost rather than the traditional cable or direct-broadcast satellite (DBS) services.
In analyzing current and predicted broadband usage, MagnaGlobal points out that as of the second quarter 2011, more than 74% of all U.S. home had some form of Internet access available. Looking five years ahead, MagnaGlobal says that number will grow from current 85.7 million homes to 97.1 million. Of that number, 95.7 million will access broadband at higher bandwidth.
More Consumers are Video ‘Cord Shavers’
Pay-TV consumers are increasingly downgrading their services. According to a new report from research group Parks Associates, 13% of consumers who have broadband connections have made cutbacks within the last 12 months, with another 9% to come.
These “cord shavers” typically spend $20 or less on monthly video services and are heavy video consumers, watching an average of 4.2 hours of Internet video on their TV each week.
Parks Associates says the growth of video cord shavers is more closely linked to the growth of broadband adoption than watching more Internet video. Read more
By 2015, 10% of U.S. Households to Cut the Video Cord
By the end of 2011, about 4% of U.S. households, or 4.5 million homes, will drop their cable, satellite or telco TV subscriptions in favor of Internet video options, according to a new report from media research firm SNL Kagan.
“Though the thin slice of households relying [on over-the-top (OTT)] substitution could be dismissed as evidence of a lack of momentum behind cord cutting, the 4.5 million households it represents are not inconsequential, particularly in light of the basic subscriber declines for the cable industry,” the firm wrote in a report.
SNL Kagan predicts that substitution via OTT applications will increase from 2.5 million households at the end of 2010, to 12.1 million by 2015, or 10% of all U.S. households.
Not surprisingly, the report received a lot of media attention, but let’s take a closer look at the numbers.
Nearly 27% of U.S. Homes are Wireless Only
As of the first half of 2010, more than one-in-four U.S. homes (26.6%) were wireless-only, an eight-fold increase in six years, according to a new report from the CDC.
The CDC notes that the prevalence of such wireless-only households now markedly exceeds the prevalence of households with only landline telephones (12.9%), and this difference is expected to grow.
Other important findings:
- 44% of respondents between the age of 18-and-30 are wireless only
- 47% of renters are wireless-only
Although national trends can be drawn, the prevalence of wireless-only households varies substantially across state lines. Read more



