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
$97.54
Apple Inc.
+2.82
GOOG
$596.63
Google Inc.
+1.89
MSFT
$44.79
Microsoft Corpora
-0.04
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

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

Ex-Angry Birds Developers Release Monsu...
Ex-Angry Birds Developers Release Monsu Teaser Trailer Posted by Jennifer Allen on July 23rd, 2014 [ permalink ] Finnish developer Boomlagoon has released a teaser trailer of their forthcoming side-scrolling action platformer, | Read more »
Lots of New Modes Have Been Added to Can...
Lots of New Modes Have Been Added to Canabalt Posted by Jennifer Allen on July 23rd, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Stronghold 3: The Campaigns Review
Stronghold 3: The Campaigns Review By Jennifer Allen on July 23rd, 2014 Our Rating: :: DULL STRATEGIZINGiPad Only App - Designed for the iPad A cumbersome strategy game, Stronghold 3: The Campaigns has a few too many issues to recommend it.   | Read more »
Table Tennis Touch on Sale for a Limited...
Table Tennis Touch on Sale for a Limited Time Posted by Jessica Fisher on July 23rd, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Secret Files Tunguska Review
Secret Files Tunguska Review By Jennifer Allen on July 23rd, 2014 Our Rating: :: CONSPIRACY-LITTERED ADVENTURINGUniversal App - Designed for iPhone and iPad Offering traditional adventuring with no fear of in-app purchases, Secret Files Tunguska is sure to entertain fans of the genre.   | Read more »
Celebrate Summer With a Cat in the Hat L...
Celebrate Summer With a Cat in the Hat Learning Library Sale Posted by Ellis Spice on July 22nd, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Dragon Raiders Review
Dragon Raiders Review By Nadia Oxford on July 22nd, 2014 Our Rating: :: RUN, DRAGON, RUNUniversal App - Designed for iPhone and iPad Dragon Raiders is rough and scaly in some parts, but overall it’s an enjoyable level-based running game.   | Read more »
MyTaskList Review
MyTaskList Review By Jennifer Allen on July 22nd, 2014 Our Rating: :: EFFECTIVE IF PLAINUniversal App - Designed for iPhone and iPad It’s not the most stylish of task management apps, but MyTaskList has all the features you could wish of such a tool.   | Read more »
FlyCraft Herbie: Crazy Machines Review
FlyCraft Herbie: Crazy Machines Review By Jennifer Allen on July 22nd, 2014 Our Rating: :: TRICKY FLYINGUniversal App - Designed for iPhone and iPad A tough game of careful thrusting and navigation, FlyCraft Herbie: Crazy Machines isn’t for everyone, but it’s well made.   | Read more »
MTN Review
MTN Review By Jessica Fisher on July 22nd, 2014 Our Rating: :: ADORABLE, SERENE, AND AMUSINGUniversal App - Designed for iPhone and iPad MTN is an adorable, talking pet mountain that is less game and more zen garden.   | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.