J.D. Power: Cord-Cutting's Impact Minor

Just 3% of pay TV customers report "cutting the cord" and canceling their video service in favor of other viewing options, according to the J.D. Power and Associates "2011 U.S. Residential Pay-to-View Study." Rates of cord-cutting vary by generation. Six perc...

Just 3% of pay TV customers report "cutting the cord" and canceling their video service in favor of other viewing options, according to the J.D. Power and Associates "2011 U.S. Residential Pay-to-View Study."

Rates of cord-cutting vary by generation. Six percent of Generation Y customers (ages 17-34) say they no longer subscribe to a residential TV service, compared with 2% of Baby Boomers (ages 47-65). One percent of customers ages 66 to 86 report cancelling cable service, while 4% of Generation X customers (ages 35-46) say the same.

"The predictions of the demise of television subscription service as we know it are clearly premature," said Frank Perazzini, director of telecommunications at J.D. Power, in a statement. "The popularity of services such as Netflix and Redbox is a clear indication that consumers are enjoying the availability of alternative viewing options. However, with 52% of television customers reporting that they still watch regularly scheduled programming as it is broadcast, the current model will remain viable for the next two to three years, at a minimum."

The study also indicates that more than one-fourth (27%) of video service customers indicate that they watch videos on a handheld mobile device, such as a music player, mobile phone or tablet. Mobile phones are still the most commonly utilized handheld mobile device for watching videos (15%), although with the surge in TV applications being developed for tablets, the use of these devices (currently 12%) could increase notably. Music players also currently hold a 12% share. Video service satisfaction is above average when customers utilize these mobile devices and music players to access content.
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