Online Video Services Replacing Cable for Parents with Young Children

by Parks Associates | Jun. 25, 2013

An unlikely group might be the next to cut the cord to cable television- parents with children.  In the past, those who abandon cable television for Internet video services have mostly been the young, single adult. 

After sports, children's programming is one of the most decisive factor in a viewer's choice of provider, and online video providers such as Netflix and Amazon are out to capture that market.  In an agreement with DreamWorks, Netflix will bring 300 hours of original kids' programming to its subscribers in the next year.   Additionally, three out of five of Amazon's first original programs will be children's programs. 

The online video services seek to have children grow up accustomed to the Internet-delivered mode of viewing.  Fostering the idea of streaming video as the natural state of viewing programs will help to build loyalty and cut down on subscriber cancellations.

According to Parks Associates research, of broadband households with minors living in them, 54 percent have subscribed to an online video service, compared to 36 percent of households with no young people.  While the overwhelming majority of households still retain their subscriptions to cable services, 11 percent of households with children have cut the cord to cable services, compared to 9 percent of adult-only households.

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