Research firm Parks Associates estimates that 7.6% of consumers are considering canceling their pay TV service for online or other video sources in 2011.
“Will those consumers come back to pay TV?” asked Parks senior analyst Brett Sappington, during a Jan. 20 presentation. They might, if their TV experience is more personalized, he said. Value-added services from broadband providers, including premium tech support, home security and automation, and region-specific services, may help turn the tide on cord cutting, he suggested. And those broadband providers’ ability to move consumer content around devices may prove to be more important than anything else.
“What we’re seeing in 2011 is moving [content] beyond other devices than the PC,” Sappington said. Tablets and mobile devices, and the ability for consumers to access social networks, widgets and VOD on them, may make pay TV attractive again, he offered.
Harry Wang, director of mobile and health research for Parks, said he believes the new 4G technologies displayed at this year’s International Consumer Electronics Show could help that three-screen push, allowing for HD video streaming, Skype video chatting and multiplayer gaming.
If consumers can access not only their pay TV content, but also other entertainment, on every device, it could push consumers back into the pay TV fold, he suggested.
From the article, "Will 2011 See Stop to Cord-cutting?" by Chris Tribbey
