Despite the growing amount of video available online, less than 8% of U.S. broadband households are considering canceling their pay-TV services in favor of online video, according to Parks Associates’ All Eyes on Video.
These results from All Eyes on Video are in line with previous Parks Associates studies, which do not show an appreciable likelihood of subscriber churn in favor of online video services. A 2008 study reported 11% of U.S. broadband households were considering canceling pay-TV services, and in an earlier 2009 survey, the number was 10%.
“The threat of cannibalization is real but misunderstood,” said John Barrett, director, research, Parks Associates. “Nobody is going to rely on online video alone—households likely to cancel their TV services are going to use a mixture of online video, free-to-air broadcasts, and DVDs, including rental services such as Netflix and redbox.”
From the press release, "PARKS ASSOCIATES FINDS LESS THAN SIX MILLION U.S. HOUSEHOLDS WOULD CONSIDER CANCELING PAY-TV SERVICE IN FAVOR OF ONLINE VIDEO"
