Cord-Cutting Intent Higher Among Connected TV Users

August 12, 2013

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TDG-Cord-Cutting-Intent-Connected-TV-Users-Aug2013It seems like a fairly obvious step: connected TV users cutting the pay-TV cord and relying solely on over-the-top programming and other sources. But the relationship between those connected TV use and cord-cutting intent has been the subject of debate for some time, according to The Diffusion Group (TDG), which has released new research suggesting that such a relationship does indeed exist.

According to TDG’s study, 8.8% of adult broadband users with an internet-connected TV and traditional residential pay-TV service report being highly inclined to cut the cord in the next 6 months (top-2 box score on a 7-point scale). That compares to 3.5% of adult broadband users with pay-TV service who don’t use a connected TV.

Given the weighting of the sample, that translates to an average of 7% of adult broadband users feeling inclined to cut the cord. One might reasonably assume that younger connected TV users are the most likely to do so. According to recent survey results from Fiber to the Home (FTTH) Council Americas, 2 in 3 young US and Canadian subscribers to fixed broadband services (cable, DSL, FTTH) are already accessing at least some video programming through over-the-top (OTT) services such as Netflix and Hulu as well as through a variety of mobile applications.

Returning to the TDG study, predictably, connected TV users are also less likely to be highly un-inclined to cancel their service. 54.8% said that was the case, compared to 65% of non-connected TV users. (Somewhere around one-third of each group were neutral.)

Still, it bears noting that the vast majority of respondents (both using and not using connected TV) are either highly un-inclined to cut the cord or not feeling a strong pull towards doing so.

About the Data: The TDG data is based on responses from 1,260 connected TV users and 618 non-connected TV users.

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