Cord-Cutters Just 0.18% Of Pay-TV Subs Globally: Study
U.K.-Based Informa Projects Over-the-Top Households to Increase to 2% of Total by 2015
By Todd Spangler -- Multichannel News, 2/3/2011 9:40:24 AM
The threat to traditional cable and satellite TV from broadband-delivered video today is minimal -- with cord-cutters representing 0.18% of all global pay-television subscribers -- but will increase more than tenfold over the next five years especially in emerging markets, according to a study by U.K.-based research firm Informa Telecoms & Media.
In 2010, approximately 1.2 million subscribers cancelled pay TV subscriptions in favor of over-the-top video alternatives, Informa estimates. By 2015, that's expected to increase to 16.1 million, or about 2% of the pay-TV base.
"While the impact of cord-cutting on pay TV has been extremely limited to date, this will change as [over-the-top] services will continue to improve and become increasingly attractive," Informa senior analyst Adam Thomas said, while cautioning there won't be a "meltdown" in the traditional subscription-TV business.
About 426,000 of the total number of cord-cutters in 2010 were U.S.-based, about 36% of the global total, with 21% in Asia-Pacific, 33% in Europe and 10% in the rest of the world.
Less-developed markets could ultimately be most vulnerable to OTT, given they have higher broadband penetration than that of pay TV. Indeed, Informa expects 39% of cord-cutters in Asia-Pacific by 2015 with 34% in Europe and 19% in North America.
China, in particular, has seen a sizable number of cord-cutters with over-the-top services, Informa found. While some services include pirated content, "for now, OTT is emerging as a fully-fledged alternative to the traditional platforms" in the country, according to Thomas.
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I dont' watch anything on the web; I simply installed an old-fashioned TV antenna outside and get better HDTV from my antenna than I did with my crappy "HDTV" cable box! The signals are so compressed and artifact-ridden, why pay them $80 a month for cr*p?
O. DuMont - 2/4/2011 3:06:50 PM EST -
Ten years ago, we were told that DVR ownership was such a tiny sliver. Now look, 38percent. Cord cutting will also grow,
Doug - 2/4/2011 5:50:59 AM EST
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