Monday, June 6, 2011

Glass Half Full on Video Cord Cutting?

It would be hard to argue that there is any current and massive trend for U.S. households to substitute online video for linear subscription TV services. On the other hand, it also would be hard to argue that the trend is not in place.

Such substitution is only “nascent,” but could grow if content owners decide to provide the content in that way, said Time Warner
chief operating officer, Landel Hobbs. Though it remains largely true that Americans are not rushing to cancel their subscription TV services, as a survey by the Consumer Electronics Association suggests, neither would it be true to say the phenomenon is not growing.

But 10 percent of survey respondents say they are “very likely” or “likely” to cancel their linear video service. And about 14 percent say they “might” do so. That is consistent with many other recent surveys. CEA’s research suggests that 76 percent of U.S. consumers have no interest in cancelling their multichannel video TV service, with 51 percent reporting they are “very unlikely” to cancel TV service.

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