Online Onslaught Overstated

Analysts who predict mass defections from cable and satellite service call it "cord cutting." But fewer people are interested in cutting the cord than has been widely reported.

According to a study by Parks Associates, less than eight percent of broadband-equipped U.S. households are considering cancellation of their cable or satellite feed. In fact, the numbers have been dropping. In 2009 the figure was 10 percent, and in 2008 it was 11 percent.

Of the six million households who are considering cancelling, half are just thinking of switching to a different pay-TV provider. Households most likely to switch or cancel altogether watch 10 hours of online video a week, much greater than the national average. They also are heavier-than-average users of DVD purchases, DVD rentals, VOD, and movie tickets, as the chart shows.

See story and press release on eHome Upgrade.

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