Yankee Group Study: 12.5% Will Cut Cord on Cable & Satellite Within a Year

Categories: Cable TV,Satellite TV

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April 30th, 2010

The press release below is several days old now, and I'm not sure if the 1 in 8 cord cutting estimate is just for the US or worldwide.  To date (or at least for the last two or three years) it could be there have been more blog posts about cord cutting than actual cord cutters.  But are we gearing up to a time when that changes?  According to the Yankee Group, we are.  

Streaming to PCs, and even to your TV via gaming consoles and other connected devices has come a long way, but has it come far enough to entice one out of eight people to cut the cord on cable and satellite over the next 12 months?

I'd bet against that, and I'm a huge, huge fan of Netflix streaming to both PC and the big screen TV (through gaming console.)

I'm sure there will be more cord cutters over the next 12 months than there were over the last 12 months.  But one out of eight strikes me as being quite high over the next 12 months.  We'll see.

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Yankee Group Says 1 in 8 Consumers Will Ax Their Coax This Year

New report finds consumers reducing or eliminating pay TV services in favor of Internet options

Boston, MA Apr 27, 2010 - The first cord-cutters were those who cut their traditional phone cords in favor of mobile phone services. Now Yankee Group uncovers a new category: the coax-cutter. These consumers Cut Off their pay TV services and use their PCs, gaming consoles and other connected devices to access video programming instead.  One in 8 consumers are set to join their ranks in the next 12 months.

In the new report "Consumers Consider Axing the Coax," Yankee Group finds the number of coax-cutters will grow due to three main factors: a new wave of connected TVs, ever-escalating pay TV prices and the advent of connected consumer devices that can act like set-top boxes, including Sony Playstation 3, Nintendo Wii and Microsoft Xbox 360 gaming consoles.

"At the most basic level, the decision to Cut Off pay TV services is an economic one," says Vince Vittore, principal analyst and co-author of the report. "As programmers continue to demand ever higher fees, which inevitably get passed on to consumers, we believe more consumers will be forced to consider coax-cutting."

Other findings include:

  • Pay TV market is flat-lining. Subscribers in Western Europe will increase just 3.9 percent from 2010 to 2013; U.S. subscribers are on a similar path, growing 6.9 percent in the same time frame.
  • Age and connected device usage play a role. Consumers who do Cut Off pay TV services will most likely be aged 18-34 and heavy mobile users or gamers.
  • Consumers will turn to other devices to skirt pay TV services.Fifty-six percent of households have at least one HDTV and 43 percent have at least one gaming console.

About Yankee Group

The people of Yankee Group are the global connectivity experts–the leading source of insight and counsel trusted by builders, operators and users of connectivity solutions for nearly 40 years. We are uniquely focused on the evolution of Anywhere connectivity, and chart the pace of technology change and its effect on networks, consumers and enterprises. Headquartered in Boston, Yankee Group has a global presence, including operations in Europe, the Middle East, Africa, Latin America and Asia-Pacific.

 
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