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Smart TV users ‘twice as likely’ to cancel pay TV

US broadband users with a connected TV are twice as likely to “cut the cord” from their pay TV subscriptions as their non-connected counterparts, new research claims.

A report from The Diffusion Group (TDG) says that, on average, 8.8% of connected TV users are “highly inclined” to cancel their pay-TV service in the next six months, compared with 3.5 % of non-connected users. And 7% are “highly likely” to cancel in the next six months.

TDG co-founder and president Michael Greeson said the relationship between connected TV access and pay TV subscription have “hit an important landmark moment” in 2013.

“Now the pay-TV industry and prominent analysts are coming to terms with the fact those with access to online video sources on their TV are more likely than their counterparts to be reconsidering the value proposition of incumbent pay-TV services,” he said.

TDG said that the vast majority of non smart-TV users had little or no interest in cancelling that service – with 65% “highly uninclined” to cancel.

But TDG said the figures should concern operators because the trend could spread across the market.

“The data does demonstrate a notable correlation between the two phenomena, one we expect to grow more strongly in the next few years,” Mr Greeson said.

 TDG research: Net-Connected TV User Dimensions.

 

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