Younger People Much More Likely To Cut Pay-TV Cord: J.D. Power

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Just 3% of all U.S. consumers have canceled TV service in favor of other viewing options, with younger viewers far more likely than their elders to cut the cord, according to a recent J.D. Power and Associates survey.

The older you are, the more likely you are to subscribe to cable: 6% of Generation Y (people 17-24) and 4% of Generation X consumers (35-46) have dropped pay-TV service. Only 2% of Baby Boomers (47-65) and 1% people 66 to 86 have done so, the research company found.

J.D. Power's "2011 U.S. Residential Pay-to-View Study" is based on responses from 6,815 U.S. households that evaluated usage of video providers including Amazon, Apple TV, Blockbuster/Blockbuster Express, Google TV, Hulu and Hulu Plus, local video stores, Netflix and Redbox. The study was fielded in April 2011.

"The predictions of the demise of television subscription service as we know it are clearly premature," J.D. Power director of telecommunications research Frank Perazzini said in a statement. "The popularity of services such as Netflix and Redbox is a clear indication that consumers are enjoying the availability of alternative viewing options. However, with 52% of television customers reporting that they still watch regularly scheduled programming as it is broadcast, the current model will remain viable for the next two to three years, at a minimum."

The survey found that Netflix and Redbox has above-average customer satisfaction scores, which were based on six factors: variety of videos provided; ease of use; cost of service; customer service experience; billing; and offerings and promotions.

Overall satisfaction with pay-to-view video service providers was 743 on a 1,000-point scale. By comparison, customer satisfaction among major U.S. pay-TV providers was 541 out of 1,000, according to J.D. Power's 2010 survey of the category.

The study also finds that 27% of video service customers said they watch videos on a handheld mobile device, such as a music player, mobile phone or tablet.