Online Video Does Not Pose A Threat To Pay-TV Services

Only 5.5 million households with broadband Internet access (or fewer than 8%) are considering canceling their pay-TV services in favor of viewing online video, according to Parks Associates. This represents a steady decline from 2008, when 11% were considering the move, and early 2009, when 10% were pondering it.

Those considering the switch watch an average of 10 hours of online video each week, a much higher number than the average household. They are also more likely to view DVDs that they have bought or rented, see movies in a theater, and use video on-demand.

Overall, only 0.5% of households who had pay-TV and cancelled it watch more than five hours of online video per week. [Entertainment]

Source: “All Eyes On Video,” Parks Associates, John Barrett, Director of Research, 5310 Harvest Hill Rd., #235, Dallas, TX 75230; 972-490-1113; barrett@parksassociates.com; www.parksassociates.com. Price: Call for information.

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