Cable Operators

LRG: 8% of Homes With Broadband Forgo Pay TV

8/01/2011 12:01 AM Eastern

About 8% of U.S. households subscribe
to broadband Internet service, and not pay TV, but
only one in 20 of these consumers cites the availability
of Internet video content for not getting a television
package, according to a survey by Leichtman
Research Group.

Just 5% of broadband-
only homes
said they do not
subscr ibe to a
multichannel video
service because
they can watch all
that they want
on the Internet or in other ways; and 2% specifically
mentioned Netflix as a reason for not subscribing.
In contrast, 28% cited cost, 26% said that they don’t
watch much TV and 18% said that they have no need
for a TV service.

“While 8% of all households in the U.S. get broadband
but do not get a multichannel video service, it is
erroneous to think of this group as making decisions
driven by online video,” LRG president and principal
analyst Bruce Leichtman said.

Broadband-only homes also don’t tend to watch
online video significantly more frequently than others,
nor do they rate the ability to watch online video
as being significantly more important in their decision
to get broadband than others do. About 19% with
broadband and no pay TV service watch online video
daily and 55% watch it weekly, versus 17% daily and
48% weekly among those with broadband and a multichannel
video service.

Among these consumers, 14% paid for a video service
in the past year and 9% with a TV set plan to subscribe
to a pay television service in the next six months.
LRG found 77% with broadband and no multichannel
video service have a telco broadband service.

Overall, 70% of households get both broadband and
multichannel video services, LRG found.

The LRG report, “Broadband Access & Services in
the Home 2011,” is based on a telephone survey of
1,500 adults 18 and older throughout the continental
U.S. conducted in April and May 2011.

September