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Cable Technology Feature Article

September 29, 2010

'Cord Cutting' Not Such a Big Deal After All?

By Juliana Kenny, TMCnet Web Editor

Last week I wrote an article about how Verizon’s (News - Alert) CEO warned cable execs to watch out for the serious effects of Internet video on the cable industry, and how it’s a very threatening issue for cable companies. A recent survey from BTIG analyst Richard Greenfield has apparently suggested he was in error.

Greenfield conducted a study of about 1,200 "multichannel" TV viewers, and out of all of them, only 5 percent will actually follow through with the elimination of cable and the absorption of Internet TV. The survey also revealed that when it comes to video streaming, most people who answered, about 69 percent had tried Hulu (News - Alert), and 54 percent had bought or rented a show from iTunes or Amazon On Demand.

37 percent of people who had initially stated that they would cut the cord on cable in favor of Internet TV indicated second thoughts on making the jump. Perhaps respondents realized that they would miss out on live sports, reality shows, as well as ‘premium’ programming such as HBO shows.

Whatever the reason, an additional survey from April 2010 showed that less than 1 percent of 100 coast-to-coast cable TV subscribers have cut the cord equating to only about 800,000 U.S. TV households.

So, whether or not Ivan Seidenberg, CEO of Verizon was correct when he warned against the pending onslaught of cord-cutting customers, perhaps cable execs should still be on the look-out. We have yet to see how many customers will stick to their words.

Juliana Kenny graduated from the University of Connecticut with a double degree in English and French. After managing a small company for two years, she joined TMC (News - Alert) as a Web Editor for TMCnet. Juliana currently focuses on the call center and CRM industries, but she also writes about cloud telephony and network gear including softswitches.

Edited by Juliana Kenny