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Cord-Cutter Numbers Steady Year-Over-Year

16 Oct, 2013 By: Doug McPherson

DURHAM, N.H. – Leichtman Research Group reports cord cutting isn’t happening en masse, and it’s not driving the growth in over-the-top services.

LRG surveyed 1,300 U.S. homes and found that 9 percent of homes that get high-speed broadband don’t subscribe to a multichannel video service. That percentage is up slightly from 8 percent in both 2012 and 2011.

The finding: consumers aren’t rushing to pull the plug on pay TV video in favor of digital video. And those without pay TV services say their choice is usually driven by price instead of preferring to watch alternative video sources.

Altman Vilandrie & Co found that less than 5 percent of consumers watch online video regularly instead of subscribing to TV.

Still, over-the-top services are growing. Park Associates says 44 percent of U.S. broadband homes have subscribed to an online video service such as Netflix, Hulu Plus or Amazon. The findings seem to indicate that the availability of OTT services is not causing cord cutting, but rather is expanding the pie for video viewing.

LRG also found that consumers are accessing the Internet through more devices. Nearly two-thirds of broadband subscribers also access the Internet on a smartphone, up from 52 percent last year.

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