Nomadic broadband video set for 154m users

By 2015, nomadic (fixed locations outside the home, such as coffee shops) broadband video users will reach 154 million nearing in-home users according to a new report, Broadband Video: On Demand, On the Go, and On the Rise. The report, from market research company The NPD Group analyses the confluence of connected devices, access, and content. By the end of 2015, the number of in-home users is expected to reach 175 million.

Mobile (on-the-go) broadband video users are also expected to grow though not as quickly as nomadic users. There were approximately 6 million mobile broadband video users at the end of 2010, a number that is expected to grow to 77 million by the end of 2015.

“Over the next few years, broadband video usage will predominantly be driven in the home by Blu-ray players and connected televisions,” said Ross Rubin, executive director of industry analysis at NPD, and co-author of the report. “Handset manufacturers, though, have opportunities to tailor devices and software to the increasing prevalence of video.”

According to NPD, pay-TV will be impacted by the growth of broadband video, but broadband video isn’t likely to cause consumers to completely end their pay-TV subscriptions. Only 4 per cent of consumers surveyed say they have completely given up pay-TV service. There are more consumers, however, who are cutting back. Nine per cent of consumers surveyed said they have reduced the amount they spent on pay-TV in the past year, and an additional 11 per cent said they are likely to reduce their pay-TV in the next year.

“The reduction in pay-TV, or cord shaving, is really just a way for consumers to cut back on their monthly entertainment bills, for now,” said Linda Barrabee, research director, Connected Intelligence at NPD and co-author of the report. “It actually sets the stage later on for broadband video usage to grow as consumers get back into the premium content market but look for less expensive alternatives.”

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