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
$124.53
Apple Inc.
-2.22
GOOG
$521.52
Google Inc.
-10.17
MSFT
$44.37
Microsoft Corporation
-0.89
MacNews Search:
Community Search:
view counter

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

This Week at 148Apps:June 22-26, 2015
June's Summer Journey Continues With 148Apps How do you know what apps are worth your time and money? Just look to the review team at 148Apps. We sort through the chaos and find the apps you're looking for. The ones we love become Editor’s Choice, standing out above the many good apps and games with something just a little bit more to offer. Take... | Read more »
LEGO® Minifigures Online (Games)
LEGO® Minifigures Online 1.0.1 Device: iOS iPhone Category: Games Price: $4.99, Version: 1.0.1 (iTunes) Description: | Read more »
World of Tanks Blitz celebrates its firs...
Today marks the first anniversary of the launch of World of Tanks Blitz, the mobile version of the PC tank battler, World of Tanks. World of Tanks Blitz launched on iOS and Android on June 26th last year and to celebrate, Wargaming is giving all players a special tank as a gift. [Read more] | Read more »
Heroes and Castles 2 Has its Own Standal...
Heroes and Castles 2 is a third-person castle defense game from the same team behind Block Fortress and Bug Heroes. It's cool, it's fun, and now it has its very own free version. [Read more] | Read more »
Formula Cartoon All-Stars Lets You Race...
Ever want to pit your favorite characters from shows like Steven Universe, Adventure Time, and Regular Show against each other in a not quite death race? Well once upon a time you could, but Formula All Stars Touch N' Go doesn't exist anymore. Hope is not lost, however. Now you can do the same thing, arguably better, with Formula Cartoon All-Stars... | Read more »
Retype - Typography Photo Editor (Photo...
Retype - Typography Photo Editor 1.0 Device: iOS Universal Category: Photography Price: $2.99, Version: 1.0 (iTunes) Description: Retype is built out of passion for great typography and it's all about adding text to photo with style. | Read more »
Hungry Shark Evolution Celebrates Shark...
Shark Week is almost here, as is Independence Day, so naturally Hungry Shark Evolution is going to get in on the action. Yes, even the fireworks. [Read more] | Read more »
The New Trivia Crack Will Feature a Musi...
It's official: iHeartMedia (you may know them from iHeartRadio) will be in charge of providing music-related questions for Trivia Crack's upcoming sequel. Also Trivia Crack is getting a sequel. [Read more] | Read more »
Toca Life: City (Education)
Toca Life: City 1.0 Device: iOS Universal Category: Education Price: $2.99, Version: 1.0 (iTunes) Description: Welcome to Toca Life: City, a metropolis filled with everyday fun! Customize characters, explore exciting locations and find hidden treasures - there’s something in every corner!INTRODUCING TOCA LIFE | Read more »
Ironkill's Big New Update is Big an...
The other popular robot fighting game on the App Store, Ironkill, has received a pretty substantial update today. We're talking new bots, new rewards, graphical tweaks; the works. [Read more] | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.