Research: High-speed broadband may accelerate cord cutting

The increasing availability and adoption of high-speed broadband is helping to drive consumers away from pay-TV, new research suggests.

About 13 percent of consumers with a broadband connection have cord-shaved in the past year, Parks Associates said, predicting that another nine percent soon would follow.

But there is a caveat... the research from the Dallas-based firm included 3.9 million people who regularly watch Internet video.

Still, Parks said more than one-in-five households with broadband now also subscribe to Netflix and pointed out that adoption of connected devices, many of which come with a Netflix app, is increasing rapidly.

Almost half of all IPTVs sold this year will be Internet ready, Parks said, and consumer sales of connected devices worldwide will reach nearly 350 million units by 2015.

Parks also said that TV Everywhere initiatives being pursued by pay-TV operators (and Fox Broadcasting for the moment) "will be an ineffective retention tool," with consumers seeing TVE as an additional premium service that only 11 percent would be willing to pay for.

For more:
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Related articles:
ABI: Pay TV operators should embrace connected CE movement
An over-the-top video revolution is upon us
Netflix, younger audience keeps cord-cutting debate hot

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