Cord cutting predictions premature’

Concerns about consumers churning from pay TV in favour of over-the-top and other services have been overstated, according to new research from the US. JD Power and Associates’ 2011 US Residential Pay-to-View Study said that 3% of US consumers have “cut the cord”.

”The predictions of the demise of television subscription service as we know it are clearly premature,” said Frank Perazzini, director of telecommunications at the research company. “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 revealed different attitudes to pay TV according to age group, with three times as many Generation Y (17-34 year-old) consumers saying they have ditched their pay TV service as their Baby Boomer (47-65 year-old) counterparts.

Separately, the study found that 27% of video service customers watch videos on a handheld mobile device. Mobile phones are still the most commonly utilized handheld mobile device for watching videos (15%), although with the surge in TV applications being developed for tablets, the use of these devices (currently 12%) will increase notably, the report said.

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