Over-the-Top TV Numbers Rising

A new report suggests that TV watching via broadband is on the rise, while devices facilitating over-the-top viewing are gaining more traction.

Parks Associates found that 31% of homes with broadband regularly watch TV online. Meanwhile, nearly 13% of U.S. broadband homes have a device facilitating OTT, viewing such an Apple TV or Roku box. The research firm said holiday-season sales were robust, and it predicts 14 million units will be sold this year. Parks Associates reported during the 2011 holiday period that 4% of households bought "one of these inexpensive, single-function devices" that enable OTT consumption from "Internet-based services, such as Amazon Prime Instant Video and Netflix." And it's not just younger viewers who may engage in cord-cutting. Kurt Scherf, a vice president at Parks, stated: "Nearly 20% of these holiday-season buyers are over 45 years of age, so these devices have achieved relatively broad appeal among multiple consumer segments." He added: "While this trend does not yet frequently equate to canceling pay-TV services, it can mean shaving some premium channels for a set of households."