About 8% of U.S. households get a broadband Internet service but not pay-TV, but only one in 20 of these consumers cites the availability of Internet video content for not getting a television package, according to a survey by Leichtman Research Group.
Only 5% of broadband-only homes said they do not subscribe to a multichannel video service because they can watch all that they want on the Internet or in other ways, and 2% specifically mentioned Netflix as a reason for not subscribing. In contrast, 28% cited cost, 26% said that they don't watch much TV and 18% said that they have no need for a TV service.
"While 8% of all households in the U.S. get broadband but do not get a multichannel video service, it is erroneous to think of this group as making decisions driven by online video," LRG president and principal analyst Bruce Leichtman said. "These decisions tend to be more based on economics, than about alternatives to traditional video services."
Broadband-only homes also don't tend to watch online video significantly more frequently than others, nor do they rate the ability to watch online video as being significantly more important in their decision to get broadband than others do. About 19% with broadband and no pay-TV service watch online video daily and 55% weekly, versus 17% daily and 48% weekly among those with broadband and a multichannel video service.
Among these consumers, 14% paid for a video service in the past year and 9% with a TV set plan to subscribe to a pay-television service in the next six months. LRG found 77% with broadband and no multichannel video service get a telco broadband service.
Overall, an estimated 70% of households get both broadband and multichannel video services, LRG found.
The LRG report, "Broadband Access & Services in the Home 2011," is based on a telephone survey of 1,500 adults 18 and older throughout the continental U.S. conducted in April and May 2011.