Yankee Group: Consumers Consider Axing the Coax

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Consumers Consider Axing the Coax

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Consumers Consider Axing the Coax

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Executive Summary

The explosion of connected consumer devices that function as part of the video ecosystem is creating a new threat for pay TV operators. Like the concern over cord-cutting in voice services—and more recently with data services—video service providers in North America and Western Europe are facing consumers potentially cutting off pay TV service in favor of over-the-top (OTT) options.

Admittedly, this is a small phenomenon now, but a number of recent transactions and news items point to a shift in consumer thinking and a rise in what we term “coax-cutting.” We believe we will see a gradual shift toward more potential coax-cutters due to the following trends:
• The introduction of connected TVs in 2010 and beyond
• The escalation of pay TV prices as operators continue to wrestle with higher programming fees
• The increased proliferation of connected consumer devices that can function as set-top boxes (STBs)

Throughout 2009, Yankee Group’s Anywhere Consumer surveys asked consumers whether they would consider cutting off pay TV service in favor of OTT options.

Keywords

Consumer, coax, TV, OTT

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Publish Date & Author(s)

by Vince Vittore, Principal Analyst, and Dmitriy Molchanov, Analyst
10 pages
April 2010