tip of the iceberg

[Dave Farber <dave () farber net>]

Begin forwarded message:

> From: Debra L Tekavec <dtekavec () andrew cmu edu>
> Date: May 3, 2010 4:20:10 PM EDT
> To: "dave () farber net" <dave () farber net>
> Subject: FW: tip of the iceberg

> Yankee Group Says 1 in 8 Consumers Will Ax Their Coax This Year
>
> New report finds consumers reducing or eliminating pay TV services  
> in favor of Internet options
>
> Boston, MA Apr 27, 2010 - The first cord-cutters were those who cut  
> their traditional phone cords in favor of mobile phone services. Now  
> Yankee Group uncovers a new category: the coax-cutter. These  
> consumers cut off their pay TV services and use their PCs, gaming  
> consoles and other connected devices to access video programming  
> instead.  One in 8 consumers are set to join their ranks in the next  
> 12 months.
>
> In the new report "Consumers Consider Axing the Coax," Yankee Group  
> finds the number of coax-cutters will grow due to three main  
> factors: a new wave of connected TVs, ever-escalating pay TV prices  
> and the advent of connected consumer devices that can act like set- 
> top boxes, including Sony Playstation 3, Nintendo Wii and Microsoft  
> Xbox 360 gaming consoles.
>
> "At the most basic level, the decision to cut off pay TV services is  
> an economic one," says Vince Vittore, principal analyst and co- 
> author of the report. "As programmers continue to demand ever higher  
> fees, which inevitably get passed on to consumers, we believe more  
> consumers will be forced to consider coax-cutting."
>
> Other findings include:
>
> Pay TV market is flat-lining. Subscribers in Western Europe will  
> increase just 3.9 percent from 2010 to 2013; U.S. subscribers are on  
> a similar path, growing 6.9 percent in the same time frame.
> Age and connected device usage play a role. Consumers who do cut off  
> pay TV services will most likely be aged 18-34 and heavy mobile  
> users or gamers.
> Consumers will turn to other devices to skirt pay TV services. Fifty- 
> six percent of households have at least one HDTV and 43 percent have  
> at least one gaming console.
> About Yankee Group
>
> The people of Yankee Group are the global connectivity experts–the l 
> eading source of insight and counsel trusted by builders, operators  
> and users of connectivity solutions for nearly 40 years. We are uniq 
> uely focused on the evolution of Anywhere connectivity, and chart th 
> e pace of technology change and its effect on networks, consumers an 
> d enterprises. Headquartered in Boston, Yankee Group has a global pr 
> esence, including operations in Europe, the Middle East, Africa, Lat 
> in America and Asia-Pacific.
>
> Contacts:
>
> Ashlee Clevenger, Yankee Group communications, +1–617–598–7268, mediarelations@yankeegro 
> up.com



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