Thursday June 30, 2011 04:54
J.D. Power and Associates Reports: Television Service "Cord-Cutting" Has Only a Minor Impact on Residential Television Subscriptions
WESTLAKE VILLAGE, Calif., June 29, 2011 /PRNewswire/ — Amid debates regarding how U.S. consumers will view video content in the near future, just 3 percent of pay-to-view customers report having “cut the cord” and canceling their television service in favor of other viewing options, according to the J.D. Power and Associates 2011 U.S. Residential Pay-to-View Study(SM) released today.
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The inaugural study provides unique insights concerning attitudes, viewing preferences, behavior patterns, awareness and experiences of pay-to-view customers among the major home television and video service providers across the United States.
While a minority of customers overall have canceled their cable television service, rates of cord-cutting vary significantly by generation. Six percent of Generation Y customers (ages 17-34) say they no longer subscribe to a residential television service, compared with only 2 percent of Baby Boomers (ages 47-65). One percent of customers ages 66 to 86 report cancelling cable service, while 4 percent of Generation X customers (ages 35-46) say the same.
“The predictions of the demise of television subscription service as we know it are clearly premature,” said Frank Perazzini, director of telecommunications at J.D. Power and Associates. “The popularity of services such as Netflix and Redbox is a clear indication that consumers are enjoying the availability of alternative viewing options. However,
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