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PCCA Journal|4

th

Quarter 2010

13

News Briefs

T

hirteen percent of current pay

TV subscribers in the U.S. say

they are “somewhat” or “very”

likely to cancel their current

subscription in the next twelve

months and not sign up with an-

other provider, according to a survey

of 2,000 U.S. households recently

conducted by Strategy Analytics.

The firm said that “cord cutting,”

the practice of dropping traditional

paid television service in favor of

free broadcast or internet-delivered

“over the top” content is a growing

trend.

“While it may represent only a

relatively small percentage today, we

anticipate the number of cord cut-

ters to increase going forward,” said

Ben Piper, director in the Strategy

Analytics Digital Consumer Practice.

“Service providers mustn’t overlook

the next generation of TV subscrib-

ers; today’s teenagers are tomor-

row’s customers.”

Younger Americans consume and

value content in a way far different

from their parents’ generation and

have little regard for how content is

delivered, according to the report.

Earlier this summer Apple re-

launched its Apple TV product,

hoping to revitalize the product

and make it a real contender in an

increasingly crowded OTT television

market.

Jia Wu, analyst in the Strategy

Analytics Digital Consumer Practice,

News Briefs continued on page 14

T

he adoption of broadband internet access slowed

dramatically over the last year, according to

research from the Pew Research Center’s Internet

& American Life Project. Two-thirds of American

adults (66 percent) now have a broadband internet

connection at home, a figure that is little changed from

the 63 percent with a high-speed home connection at a

similar point in 2009.

Most demographic groups experienced flat-to-modest

broadband adoption growth over the last year. The

notable exception to this trend came among African-

Americans, who experienced 22 percent year-over-year

broadband adoption growth.

By a 53-41 percent margin, Americans say they do

not believe that the spread of affordable broadband

should be a major government priority.

Asked in a national phone survey about expanding

affordable high-speed internet access to everyone in

the country, respondents answered as follows:

26 percent of Americans said that expansion of af-

fordable broadband access should not be attempted

by government,

27 percent said it was “not too important” a priority,

30 percent said it was an important priority, and

11 percent said it should be a top priority.

While younger users (those under 30) and African-

Americans are the most likely to favor expanded

government efforts, those who are not currently online

are especially resistant to government involvement in

broadband promotion. Fully 45 percent of non-users

said government should not attempt to make affordable

broadband available to everyone, while just 5 percent

of those who don’t use the internet said broadband ac-

cess should be a top federal government priority.

In addition to their skepticism towards government

efforts to promote widespread broadband adoption,

the 21 percent of American adults who do not use the

internet are not tied in any obvious way to online life

and express little interest in going online.

They do not find online content relevant to their

lives. Half (48 percent) of non-users cited issues re-

lating to the relevance of online content as the main

reason they do not go online.

They are largely not interested in going online. Just

one in ten non-users said would like to start using

the internet in the future.

They are not comfortable using computers or the

internet on their own. Six in ten non-users would

need assistance getting online. Just one in five know

enough about computers and technology to start us-

ing the internet on their own.

“As broadband technologies have been adopted in

the majority of American homes, a debate has arisen

about the role of government in stepping in to ensure

availability to high-speed internet access for all Ameri-

cans,” said Senior Research Specialist Aaron Smith,

author of the new report. “The majority think not, and

the surprise is that non-users are the least inclined to

think government has a role in the spread of broad-

band. It could be that the recession is causing Ameri-

cans to prioritize other issues, or it could be general

anti-government wariness. It could also stem from the

fact that not many non-users are anxious to see govern-

ment promoting technologies that they view as difficult

to use and offering uncertain benefits.”

Pew Research Center: Home Broadband 2010

Report: 13% of Americans Likely to ‘Cord Cut’ from Pay TV in the Next Year