iPad Users and Intenders More Likely to “Cut the Cord”

People who own iPads, and those who say they will buy an iPad, are more likely to cancel their multichannel video entertainment subscriptions, says Michael Greeson, The Diffusion Group founding partner and director of research.

About 34 percent of iPad owners surveyed by TDG say they might cancel their multichannel video entertainment service in the next six months, more than twice the rate among respondents who say they intend to buy an iPad (14 percent) and three times the rate among average adult broadband users (10 percent).

The study suggests 13 percent of iPad owners are "highly likely" to cancel their multichannel video service in the next six months, twice the rate among respondents who say they want to buy an iPad (six percent) and three times the rate among average adult broadband users (four percent).

About 36 percent iPad owners and 30 percent of respondents who say they want to buy an iPad are likely to downgrade their multichannel video service in the next six months, compared with 21 percent of average adult broadband users.

Some 27 percent of iPad owners say they are "highly likely" to downgrade their multichannel video service in the next six months, compared with 14 percent of respondents who want to buy an iPad 10 percent of average adult broadband users.

Though the typical caveats apply (users don't always do what they say they will), one might draw any number of conclusions from the survey data. Some users might value their iPad experience enough, and derive low enough value from multichannel TV, that they are shifting spending from TV subscriptions to device purchases.

It might be that iPad ownership and demand for multichannel video services are correlated behaviors, but that the iPad purchase decision is not directly related to the lower evaluation of TV subscriptions. In other words, most iPad owners might be people who for other reasons have a lower view of the value of multichannel video.

Or, one might conclude that the iPad is having a real impact on the linear video market, allowing people to more easily drop their multichannel TV service and consume their video online. No matter which scenario makes most sense, all the potential explanations would seem to be negative for linear video.

iPad Users and Intenders More Likely to “Cut the Cord”