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
$106.98
Apple Inc.
-0.36
GOOG
$550.31
Google Inc.
+0.98
MSFT
$46.05
Microsoft Corpora
-0.57
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

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

Night Sky Pro™ (Reference)
Night Sky Pro™ 3.0.1 Device: iOS Universal Category: Reference Price: $2.99, Version: 3.0.1 (iTunes) Description: Night Sky Pro™Wonder No More™Night Sky Pro™ is the ultimate stargazing experience. From the creators of the original Night Sky™ app comes an all-new powerful and immersive encounter with the sky above! | Read more »
Audio Defence : Zombie Arena (Games)
Audio Defence : Zombie Arena 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: A zombie shooter audio game. Made from gut-wrenching 3D binaural sound, for a new kind of weird immersion. You are the blind warrior, fighting off wave after wave of Dr Bastard’s Zombies. With 3D binaural sound... | Read more »
RPG Asdivine Hearts (Games)
RPG Asdivine Hearts 1.1.0 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1.0 (iTunes) Description: SPECIAL PRICE50% OFF (USD 7.99 -> USD 3.99)!!!Travel alongside four companions and a cat in the adventure of a lifetime and one that transcends even the world in this latest fantasy RPG!◆◇Story◇◆ | Read more »
Haunt the House: Terrortown (Games)
Haunt the House: Terrortown 1.0.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.0.1 (iTunes) Description: 66.6% OFF! SPECIAL SPOOKY HALLOWEEN LAUNCH PRICE! 66.6% OFF!...What was that sound? Is somebody there? | Read more »
SAS: Zombie Assault 4 Review
SAS: Zombie Assault 4 Review By Jennifer Allen on October 30th, 2014 Our Rating: :: FLAWED SHOOTERUniversal App - Designed for iPhone and iPad Shoot everything that moves in this fun, if flawed, twin-stick shooter.   | Read more »
Naailde the Witch Review
Naailde the Witch Review By Amy Solomon on October 30th, 2014 Our Rating: :: PITCH-PERFECT STORYTELLINGUniversal App - Designed for iPhone and iPad Marvelous storytelling, narration, and moving illustrations make this storybook worth a download.   | Read more »
1st & Goal Review
1st & Goal Review By Andrew Fisher on October 30th, 2014 Our Rating: :: FOR THE D&D LOVING QBUniversal App - Designed for iPhone and iPad 1st & Goal is a board gamer’s football game, a football fan’s board game, and well worth a look.   | Read more »
French Developer Pated Unveils Seashine
French Developer Pated Unveils Seashine Posted by Ellis Spice on October 30th, 2014 [ permalink ] French one-man studio Pated has unveiled Seashine, “a poetic journey into the abyss.” Players take on the role of a jellyfish strugglin | Read more »
Agents of Storm: Tips, Tricks, and Strat...
Calling all agents: Would you like to see what we thought of this rather pretty base builder? Check out our Agents of Storm review! Have you downloaded Agents of Storm, been bowled over by the graphics, and aren’t quite sure what to do next? Never fear, for we’re here with some handy tips and tricks to help any beginner get started!   Diamonds Are... | Read more »
Any.DO 2.0 Hopes to Help Manage Producti...
Any.DO 2.0 Hopes to Help Manage Productivity Posted by Ellis Spice on October 30th, 2014 [ permalink ] iPhone App - Designed for the iPhone, compatible with the iPad | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.