The percentage of “pay-TV refugees”—broadband subscribers who don’t...
The percentage of “pay-TV refugees” -- broadband subscribers who don’t subscribe to cable or other pay-TV services -- is on the rise, research firm The Diffusion Group (TDG) said Tuesday. There are now about 11 million U.S. households designated as…
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pay-TV refugees, 12.5 percent of all U.S. broadband subscribers, TDG said. That percentage is up from 11.2 percent in late 2011 and 9.5 percent in late 2010, TDG said. Many pay-TV refugees are “cord cutters” who have stopped subscribing to pay-TV services, while the rest are “cord nevers” who never used such services, TDG said. “Cord nevers,” particularly younger ones who prefer over-the-top (OTT) services like Netflix and Hulu, will be a particular challenge to the pay-TV industry in coming years, TDG said. “Spending $80-$100 per month for a pay-TV service, though enjoyable, is more of a luxury than a necessity,” said TDG founding partner Michael Greeson in a news release. “And by combining free over-the-air broadcasts with a couple of $8 per month OTT subscriptions and free online video, they can easily create an imperfect but sufficient substitution solution. And many will” (http://xrl.us/bn3rge).