IHS Screen Digest Does Think People are Substituting Online Video for Cable TV

The number of multichannel subscription TV households in the United States declined by nearly 380,000 in the second quarter of 2011 as traditional cable and satellite video providers continued to lose subscribers because of economic factors and lower-priced Internet video solutions, according to new IHS Screen Digest findings from information and analysis provider IHS.

The noteworthy angle here is that IHS does believe over-the-top online video is having an impact. Most observers say customers are "cutting the cord" to save money, or because they are not so interested in TV, but not specifically to watch online alternatives. IHS thinks the substitution is happening.

Total U.S. TV subscriptions in the second quarter—the latest time in which full figures are available— decreased to 100.9 million, down from 101.4 million in the first quarter.

Overall, the loss of approximately 378,000 households during the period was much greater than the increase of 345,000 seen in the fourth quarter of 2010. The decline also reversed much of the gains that occurred in the first quarter this year when some 461,000 subscriber households had signed on to new services. The last time a loss of this magnitude took place was a year ago in the second quarter of 2010, when the industry dropped approximately 249,000 subscribers.

US Pay-TV Subscriptions Decline by 380,000 in Q2