Cord cutting of pay TV services accelerates

Consumers subscribing to television service via cable, satellite or telco services are downgrading their services at an accelerating pace, according to a new industry study.

Parks Associates of Dallas said in a recent report that 13 percent of viewers who have broadband connections have made cutbacks within the last 12 month, and another 9 percent is about to cut the cord. Park's study said this includes about 3.9 million people who regularly watch Internet video. "Cord cutters," who typically spend $20 or less on monthly video services, are heavy TV users. They watch, on average, 4.2 hours of Internet video on their TV each week. Parks found the move away from pay TV is more closely linked to the growth of broadband adoption than watching more Internet video. This does not bode well for the "TV Everywhere" initiative being pushed by cable services. It allows only subscribers, who enter passwords, to view content online.