[opendtv] CEA Survey: 10% Of Pay-TV Households Plan To Cut Cord In 2011
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 1 Jun 2011 07:59:26 -0400
http://www.multichannel.com/article/469022-CEA_Survey_10_Of_Pay_TV_Households_Plan_To_Cut_Cord_In_2011.php
CEA Survey: 10% Of Pay-TV Households Plan To Cut Cord In 2011
Trade Group Highlights Survey Finding Only 8% Of TV Households Rely
On Broadcast
By Todd Spangler -- Multichannel News, 5/31/2011 5:52:10 PM
About 10% of pay-TV households are planning to cancel their cable,
satellite or telco TV service this year -- but they're turning to
Internet sources of content, not over-the-air broadcasts, according
to research from the Consumer Electronics Association.
CEA called out the findings on over-the-air households, noting that
currently 8% of all U.S. TV households rely on broadcast TV. That
represents some 9 million homes, a number that has been steadily
declining since 2005, according to the group.
The trade group has been lobbying the U.S. government to institute
voluntary incentive auctions for broadcast spectrum, arguing that it
is a resource better used for high-speed wireless data services.
"Over-the-air TV was once the defining distribution platform," CEA
president and CEO Gary Shapiro said in announcing the survey results.
"But using huge swaths of wireless spectrum to deliver TV to homes no
longer makes economic sense. Congress should pass legislation to
allow for incentive auctions so free market dynamics can find the
best purposes for underused broadcast spectrum, such as wireless
broadband."
Shapiro continued, "Contrary to the National Association of
Broadcasters' assertions, antenna sales are falling and cord-cutters
are not shifting to over-the-air television but rather to the
Internet. The only cord being cut these days is the one to the
antenna."
The phone survey of 1,256 adults was conducted in December 2010,
using Opinion Research Corp.'s computer-assisted telephone
interviewing system.
Responding to the CEA survey, National Association of Broadcasters
spokesman Dennis Wharton said, "CEA has zero credibility when it
comes to calculating over-the-air TV viewership. Knowledge Networks
has stated that over-the-air exclusive homes are more than 14% and
rising. We trust an unbiased research firm over a survey paid for by
CEA."
According to the CEA's survey, on the pay-TV front, about 76% of
respondents said they were "unlikely" or "very unlikely" to cancel
pay-TV service in the next 12 months, 14% said they were "somewhat
likely" or "somewhat unlikely" to do so; and 10% said they are
"likely" or "very likely" to cut the cord.
Cable, satellite and telco TV services remain the most popular source
for video content, cited by 80% of respondents, followed by:
Blu-ray/DVD (72%), free video-on-demand (45%), DVR (41%), paid VOD or
pay-per-view (33%), online sources such as YouTube (31%), free online
TV shows and movies such as from Hulu (27%), and paid online services
such as Netflix (22%).
Approximately 96% of U.S. households, or 114 million, own a TV, the
CEA estimates. The report is available here:
http://www.cesweb.org/shared_files/ECD-TOC/CEACordCuttingAnalysis.pdf.
-- John Eggerton contributed to this article.
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