New Study Finds Consumers Are Not “Cord Cutting”

NEW YORK: Despite the increased use of alternative viewing platforms, the vast majority of consumers intend to continue to maintain their traditional subscriptions with TV providers, an annual study by Frank N. Magid Associates reveals.

Magid’s new report, 2010: The New Age of Video Entertainment, negates the view that cable, satellite and telco TV providers have been working under, that assumes the use of alternative video platforms will make consumers "cut the cord" and cancel their subscriptions. In fact, consumers using the greatest number of alternative platforms also tend to spend the most money on traditional subscription services.

Forty percent of consumers are watching TV shows and movies online, and of those who aren’t, another 10 percent express interest in trying this type of viewing. Interest is even higher for viewing content on an Internet-connected TV, and even higher than that for devices designed specifically to stream content to the TV, including AppleTV and Roku.

"The average American’s capacity to consume video content is impressive," said Maryann Baldwin, the VP 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. Our research indicates that this is definitely not a zero-sum game—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."