Strategy Analytics: 13% of Americans Will Cut Pay-TV Cord

BOSTON, MA - Thirteen percent of current pay-TV subscribers in the U.S. say they are "somewhat" or "very" likely to cancel their current subscription in the next 12 months — and not sign up with another provider — according to a survey of 2,000 U.S. households recently conducted by Strategy Analytics.

The firm says that “cord cutting,” the practice of dropping traditional paid television service in favor of free broadcast or Internet-delivered over-the-top (OTT) content, is a growing trend. “While it may represent only a relatively small percentage today, we anticipate the number of cord cutters to increase going forward,” says Ben Piper, director in the Strategy Analytics Digital Consumer Practice. “Service providers mustn’t overlook the next generation of TV subscribers; today’s teenagers are tomorrow’s customers.”

Younger Americans consume and value content in a way far different from their parents’ generation and have little regard for how content is delivered, according to the report.

Earlier this month, Apple relaunched its Apple TV product, hoping to revitalize the product and make it a real contender in an increasingly crowded OTT television market. Jia Wu, analyst in the Strategy Analytics Digital Consumer Practice, says that Apple TV hopes to capitalize on its loyal and enthusiastic customer base to fill a void that currently exists in the market.

“’Like the music industry prior to iTunes and the iPod, the online premium video market still lacks a perfect provider that can connect a service with a device to create a great user experience,” says Wu. “With its new and improved TV product, Apple is now preparing itself to repeat the success it has had in the music business in the rapidly growing online premium video market.”