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. About 22% of all broadband households – or more than one in five homes – utilize the Netflix Watch Instantly service.
Parks Associates suggests that pay-TV providers improve their video-on-demand selections to answer the mounting competition from over-the-top (OTT) and traditional video rental services. The report also suggests that set-top box distributors include access to YouTube.
Parks Associates points out that the rise in affordable, broadband-enabled video devices is enabling the cord-shaving trend. In 2011, nearly 50% of all flat-panel TVs sold will be broadband-enabled, and about two-thirds of U.S. broadband households will have a video-game console connected to the Internet. By 2015, worldwide sales of Internet-connectable TV devices will increase to nearly 350 million devices worldwide.
For more, see this post at Media Daily News.