Online viewing not the future of TV just yet
TweetFollow Us on Twitter

Online viewing not the future of TV just yet

If Apple is expecting its Macs, iPhones, iPads, etc., to be the future of TV viewing, Jobs & Company have their work cut for them. Despite the growing amount of video available online, less than 8% of U.S. broadband households are considering canceling their pay-TV services in favor of online video, according to Parks Associates (http://www.parksassociates.com).

A 2008 study reported 11% of U.S. broadband households were considering canceling pay-TV services, and in an earlier 2009 survey, the number was 10%. A new study found approximately 5.5 million homes would be open to canceling pay TV due in part to the availability of online video. At the same time, one-half of these households are also considering a switch to a new pay-TV provider, indicating the primary threats to companies such as Verizon, Comcast, DirecTV, and Cablevision are still their traditional competitors.

The households likely to switch or cancel their services watch a whopping 10 hours of online video each week, much higher than typical video consumers. They express strong interest in having online access to pay-TV channels (e.g., TV Everywhere), which highlights an opportunity for traditional pay-TV providers to solidify their base through the deployment of such features. Offline video consumption is also higher. Their median number of DVD rentals from the last six months is 18, compared to two rentals among other households.

"The threat of cannibalization is real but misunderstood,” says John Barrett, director, research, Parks Associates. “Nobody is going to rely on online video alone -- households likely to cancel their TV services are going to use a mixture of online video, free-to-air broadcasts, and DVDs, including rental services such as Netflix and redbox.”

Barrett also discounted the immediate threat of migration to online video. “Very few households have made the switch, a sign that the alternative is not yet compelling," he says. "Just 0.5% of broadband households (350,000 homes) had pay TV, cancelled it, and now watch five or more hours of online video per week. People who have made the switch to online video are few in number, and they don’t watch much TV anyway."

So if Apple want to make serious in-roads into getting a solid presence in the living room, it's going to have to rethink the Apple TV -- and move it out of the hobby category.

 
AAPL
$119.00
Apple Inc.
+1.40
GOOG
$540.37
Google Inc.
-0.71
MSFT
$47.75
Microsoft Corpora
+0.28
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Raby (Games)
Raby 1.0.3 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0.3 (iTunes) Description: ***WARNING - Raby runs on: iPhone 5, iPhone 5C, iPhone 5S, iPhone 6, iPhone 6 Plus, iPad Mini Retina, iPad Mini 3, iPad 4, iPad Air, iPad Air 2 and all future iOS devices****** Please close all active applications, before running... | Read more »
Oddworld: Stranger's Wrath (Games)
Oddworld: Stranger's Wrath 1.0 Device: iOS Universal Category: Games Price: $5.99, Version: 1.0 (iTunes) Description: ** PLEASE NOTE: Oddworld Stranger's Wrath requires at least an iPhone 4S, iPad 2, iPad Mini or iPod Touch 5th gen."A stunning and exquisitely realized masterpiece that delivers a gaming experience unlike any that we... | Read more »
Bounce On Back (Games)
Bounce On Back 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: | Read more »
Dwelp (Games)
Dwelp 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: === 50% off for a limited time, to celebrate release ===Dwelp is an elegant little puzzler with a brand new game mechanic. To complete a puzzle, just link all of the same-colored dots by placing them one near another. There's a catch,... | Read more »
Make Way for Fat Chicken, from the Maker...
Make Way for Fat Chicken, from the Makers of Scrap Squad Posted by Jessica Fisher on November 26th, 2014 [ permalink ] Relevant Games has announced they will be releasing their reverse tower defense game, | Read more »
Tripnary Review
Tripnary Review By Jennifer Allen on November 26th, 2014 Our Rating: :: TRAVEL BUCKET LISTiPhone App - Designed for the iPhone, compatible with the iPad Want to create a travel bucket list? Tripnary is a fun way to do exactly that.   | Read more »
Ossian Studios’ RPG, The Shadow Sun, is...
Ossian Studios’ RPG, The Shadow Sun, is Now Available for $4.99 Posted by Jessica Fisher on November 26th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Mmmm, Tasty – Having the Angry Birds for...
The very first Angry Birds debuted on iOS back in 2009. When you sit back and tally up the number of Angry Birds games out there and the impact they’ve had on pop culture as a whole, you just need to ask yourself: “How would the birds taste following a three-hour engagement with a broiler?” | Read more »
Rescue Quest Review
Rescue Quest Review By Jennifer Allen on November 26th, 2014 Our Rating: :: PATH BASED MATCH-3Universal App - Designed for iPhone and iPad Guide a wizard to safety by matching gems. Rescue Quest might not be an entirely original match-3 game, but it is quite fun.   | Read more »
You Can Play the Final Chapter of Lone W...
You Can Play the Final Chapter of Lone Wolf: Dawn Over V’taag Right Now Posted by Jessica Fisher on November 26th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.