Monthly Archives: April 2012

Only 37% will buy connected TVs for broadband – YouGov

A survey by UK pollster YouGov suggests that well under half of UK consumers (37%) planning to buy a Connected TV will buy it because it is broadband-enabled. Instead, the most common reason for intending to buy one is simply having a more up-to-date TV – a factor cited by 50% of potential purchasers.

YouGov found that the most important feature of Connected TVs amongst people who already owned one was the picture quality (cited by 96% of owners) followed by the size of the screen (93%) then sound quality (89%).

Furthermore, only half (53%) of Connected TV owners correctly identified a Connected TV as a TV that connects to the Internet without the need for another device; while one in four (25%) Connected TV owners have never used it to connect to the internet.

YouGov commented that the profile for adoption of Connected TV sets in technology terms was “very similar” to that of iPad owners: “These are the kind of people who are willing to make a big ticket purchase without quite realising what they’ve bought.”

Other data shows that amongst owners of Connected TVs, over one third (36%) have a Sony, followed by Samsung (33%) then Panasonic (16%). However, almost two-thirds (62%) of people planning to purchase one in the next 12 months are considering Samsung, followed by Sony (48%) and Panasonic (40%).

Meanwhile, over one quarter (26%) say they plan to buy an Apple TV, even though the manufacturer has not yet launched one.

The research is likely to be a major talking-point at the Connected TV Summit later this week, at which farncombe will be speaking as well as chairing.

Report: 2.65m US pay-TV subs ‘cut the cord’ in 2008-2011

Some new evidence from the US claiming that ‘cord-cutting’ may be a real phenomenon after all.

Today’s Morning Bridge cites research from Convergence Consulting Group saying that “2.65M Americans between 2008-2011 canceled their pay-TV subscriptions in favor of those offered from internet streaming services.” Convergence predicts that by the end of this year, “as many as 3.58M consumers will cut their cord.”

The Bridge adds that in a separate report, Leichtman Research has found that the top 14 US MVPD operators added 175K fewer subs in 2011 than in 2010.

Claims about the impact of cord-cutting have frequently been disputed because it is difficult to gauge what proportion of customers are churning out of pay-TV simply because they’re cutting back on their entertainment expenditure during the recession, or for other reasons unrelated to the availability of OTT services such as Hulu and Netflix.

Update: Leichtman Research has pointed out to Connected TV that it was Convergence Consulting Group and not themselves which was responsible both for the 3.58M cord-cutter prediction, and the conclusion that OTT was the culprit. This was not made clear in the Morning Bridge article, and the above post has been amended accordingly.