cord-cutting

More consumers with cable, satellite or telco TV services have downgraded their services in the last year — and more are on the way. Dallas-based researcher Parks Associates says 13% of consumers who have broadband connections have made cutbacks within the last 12 months — with another 9% to come. The study says this includes some 3.9 million people who regularly watch Internet video.

Some bad news for the cable and satellite companies that have been pooh-poohing the possibility that millions of subscribers will cut the pay TV cord. Researchers at SNL Kagan say they expect 12.1 million homes in 2015 will receive TV shows and movies from Internet services such as Netflix instead of a traditional pay TV provider.

More studies reveal cord-cutting isn’t a threat to traditional TV distribution systems — yet. Just 3% of subscription TV consumers are “cutting the cord” of TV distribution systems — cable, satellite, or telco — per a survey from consumer researcher J.D. Power and Associates. Of those surveyed, young adults 17-34 are the most likely to cut the cord — 6% say they no longer subscribe to a residential television service.

Cord-cutting — quitting cable or satellite TV in favor of online video sources — has become a popular move for people who want more control over their television watching. Believers say it’s the dawn of a new era of more personalized entertainment choices; skeptics say it’s more about saving money in a down economy. Naysayers say the hype outstrips the facts — TV remains extremely popular.