Saturday, October 9, 2010

7% of Households Have Abandoned Video Service, Study Suggests

Wedbush Securities analyst James Dix says research suggests consumers are getting rid of their cable and satellite TV services to a greater extent than they're dumping their Internet connections. He thinks that means they are substituting Web video.

In a survey of 2,500 consumers, seven percent said they had stopped using basic cable service and 12 percent reported cutting their premium cable or satellite services. Two percent of respondents cancelled their Internet connections.

Dix also found that cord cutting was more related to income than age, despite the common view that younger consumers would be among the first to abandon traditional pay TV.

Homes with income under $50,000 cancelled basic cable at the highest rate, 8 percent, while only 3 percent of higher-income homes, those at $100,000 and above, axed basic cable, according to the survey.

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