Not Ready to Cancel Pay-TV Service Yet
A consumer survey conducted by ABI Research reveals that a significant number of consumers are interested in online media content. Approximately 32% of consumers surveyed said they would like to watch Internet video on TV, which is good news for video content providers like Netflix and Hulu. This is twice the number of people who said this the previous year. However, these same consumers are not quite ready to cancel their pay-TV service and use the Internet solely for video content. Only 13% would consider canceling pay-TV service in lieu of receiving content only from the Internet.
Industry experts surmise that the technology is too complicated for some consumers, pay-TV services are not universally available from a single online video content provider, and consumer equipment and internet service limitations prevent consistent delivery of online video content.
This issue will be sure to have an impact on the FCC's auction of additional spectrum, consumer bandwidth requirements, and the design of new devices designed to stream video content. Video content is a voracious consumer of bandwidth, and is identified as a major cause of internet bottlenecks.
The research report is called "How Consumers Buy, Consume, and Manage Digital Content."