Magid Study Finds Little Cord Cutting
Only 1% cancel subscription services for online video
By George Winslow -- Broadcasting & Cable, 11/30/2010 6:42:04 PM
Frank N. Magid & Associates annual survey of consumer video consumption patterns found increased consumption of video on alternative platforms but uncovered little evidence of people abandoning subscription TV services. Only 1% of those survey reported dumping their pay TV provider in favor of accessing online video and only 2.5% of consumers claimed to be using Internet video content as their exclusive source of video. Only 3% of consumers noted that they were even considering cancelling traditional multichannel services.
The survey also found that 40% of consumers are watching TV shows and movies online using a laptop or computer at least occasionally but that consumers using the greatest number of alternative platforms also tended to spend the most money on traditional subscription services.
"The average American's capacity to consumer video content is impressive," noted Maryann Baldwin, vice president of Magid Media Futures. "As new video viewing platforms such as instant streaming and mobile apps proliferate, consumers are simply adding them to their portfolio of video viewing options....At least at this point it appears that traditional subscription services and alternative viewing platforms can coexist with services like TV Everywhere locking in revenues for traditional providers."
Magid's "2010: The New Age of Video Entertainment" report also looked at consumer interest in 3D technologies and found that about eight percent of consumers are very likely to purchase a 3D television sets in the next 12 months. Based on the fact that about 8-10% of consumers said they planned to buy HD sets in the early days of that technology but only 4-5% actually acquired these sets Magid is predicting that about 5% of all consumers will have 3D sets by the fall of 2011.
The online survey was conducted in October 2010 with a sample of 1,208 adults aged 12 and over.
The headline of this article misrepresents its content. Your treatment here of the Magid study only addresses cord cutting as a trade off for online video. Cord cutting is absolutely happening, even if only temporarily.
For example, US cable operators lost more than 700,000 basic video customers in 3rd Q 2010 - per SNL Kagan, TVNewsCheck, Nov 17, 2010.
If people are dropping cable (and to a lesser extent satellite) subscriptions for reasons OTHER than watching that same video online, the implication is that cord cutters don't find the content to be of sufficient value for their time, not just for their money (a much bigger problem than trading cable/sat for online viewing).
Meanwhile ... I'm no statistician, but the margin of error on a study employing 1,200 people to represent a population of more than 300,000,000 is probably pretty large.
Ethan Beute - 12/1/2010 2:21:57 PM EST
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