13% of Broadband Homes Skip Pay TV

According to TDG, 13% of U.S. broadband subscribers - some 11 million households - do not subscribe to pay TV services. The research house says the percentage of broadband households doing without pay TV has increased from 9.5% in late 2010, to 11.2% in late 2011, to 12.5% today.

TDG separates pay TV refugees into two segments: Cord Cutters (broadband users who once subscribed to pay TV but no longer do) and Cord Nevers (broadband users who have never subscribed to pay TV). The two segments differ considerably. Cord Cutters are a bit older, have higher annual incomes, and are more likely to have children under 18 living in the home. Almost a third of Cord Nevers are between the ages of 18 and 24, more than half have annual incomes under $30,000, and only one-fifth have children under 18 living in the home.

While TDG expects both segments to increase over the next five years, the research house believes the Cord Nevers - technologically savvy young consumers - will be a growing challenge for pay TV operators to reel in.
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