View Single Post
Old April 14 2010, 08:50 PM   #15
Vice Admiral
View Arrqh's Twitter Profile
Re: Nearly 800,000 U.S. TV households 'cut the cord'

Scout101 wrote: View Post
Less than a percent, so not really much to try and draw a trend from, especially if you consider that some of it is likely a result of the current economic situation, and not because of choice or finding the internet/netflix more convenient...
It's just a fraction of the market, but there's still enough data to pull out a general trend. It certainly doesn't mean the end is nigh for cable, of course.

Convergence Consulting Group said that cord-cutters currently represent less than three percent of people who watch full TV shows online—that's because the majority of Americans use online video to supplement their TV viewing habits, not replace them. This is good news for the networks and advertisers, as ad revenue on traditional broadcasts is still many orders of magnitude higher than what can be scraped together online. This much is evidenced by some of Hulu's troubles in keeping popular shows on its site and its ad bucket full.

Still, the number of US households going without satellite or cable is expected to reach 1.6 million by the end of 2011. These people are looking to iTunes, Netflix, over-the-air broadcasts, and other streaming options to take care of their needs—they're looking to DVD and Blu-ray less thanks to "tough economic times" and because Netflix, Redbox, and online options offer a lower value proposition.
That, of course, is the whole reason why content producers delay their DVD and online releases—they want to make as much money as possible from the traditional broadcast before they defer to lower-level revenue generators. And because content creators can do that, they will continue to do so forever—or until the online-only market becomes so large that it will be impossible to ignore. 1.6 million households in 2011 is pretty large, but it's not enough to tip the scale just yet.
Don't you know? The chances of a random object being a scone are about one in six.
Arrqh is offline   Reply With Quote