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August 16, 2013
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Connected TV users twice as inclined to cord cut

According to a new report from The Diffusion Group (TDG), adult broadband users in the U.S. with an Internet-connected TV are twice as likely as those with non-Internet connected TVs to be “highly inclined” to cancel their current Pay TV service. The findings are in a new report called ‘Net-Connected TV User Dimensions’.

The analyst firm surveyed adult broadband users who currently subscribe to a traditional Pay TV service about their intentions to keep subscribing or not. It concluded that on average, 7% of this segment are would-be ‘cord cutters’, having answered ‘6’ on a 7-point scale when asked if they are likely to cancel their subscription in the next six months.

When you split this segment according to whether they own a connected or non-connected TV, there is a clear difference in mindset. Michael Greeson, Co-founder and President of TDG says: “8.8% of connected TV users are highly inclined to cancel their current Pay TV service in the next six months, compared with only 3.5% of non net-connected TV users. The data does demonstrate a notable correlation between the two phenomena, one we expect to grow more strongly in the next few years.”

The company says it has long-argued that the casual relationship between connected TV ownership and inclination to cord-cut  would grow stronger over time. The company thinks we hit a landmark moment this year.

“The Pay TV industry and prominent analysts are coming to terms with the fact that consumers with access to online video sources on their TV are more likely than their counterparts to be reconsidering the value proposition of incumbent Pay TV services, Greeson says.