According to CNN/Money, the research firm Yankee Group is forecasting that 1 in 8 consumers will reduce or eliminate their cable or satellite subscriptions this year.
The main driver for this shift is price. Key quote from the article:
"The biggest reason why customers will cut the cord, according to the study, is the growing cost of pay-TV service. Cable and satellite viewers pay an average of $71 per month, and they receive an annual price hike of 5%, according to research firm Centris."
The other drivers are, of course, the expansion of broadband and the growing availability of video content on the web. In March, for example, Nielsen reported that more than 9 billion video streams were viewed in the U.S.
Despite the shift away from cable/satellite services, it does not yet appear that American's love affair with TV has ended. Nielsen also recently reported that the average U.S. home has 2.93 TV sets, up from 2.86 in 2009. The average TV owning home has 2.5 residents, so the average U.S. home has more TVs than residents.
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Online Business Plan
Posted by: Online Business Plan | May 17, 2010 at 06:16 AM