Consumer research from Leichtman Research Group (LRG) finds that 8 per cent of US households get a broadband Internet service, but do not subscribe to a multi-channel video service, while 70 per cent of households get both broadband and multi-channel video services.
Among this group getting broadband but not multi-channel video, the reason for not subscribing to a multi-channel video service is generally not driven by online video. Just 5 per cent of this group doesn’t subscribe to a multi-channel video service because they can watch all that they want on the Internet or in other ways, and 2 per cent specifically mention Netflix as a reason for not subscribing. In contrast, 28 per cent cite cost, 26 per cent say that they don’t watch much TV, and 18 per cent say that they have no need for a service.
In addition, this group does not tend to watch online video significantly more frequently than others, nor do they rate the ability to watch online video as being significantly more important in their decision to get broadband than others do.
– 19 per cent with broadband and no multi-channel video service watch online video daily, and 55 per cent weekly –compared to 17 per cent daily, and 48 per cent weekly among those with broadband and a multi-channel video service
– 41 per cent with broadband and no multi-channel service rate the ability to watch video online as very important in their decision to get broadband – compared to 37 per cent of those with broadband and a multi-channel video service
These findings are based on a telephone survey of 1,500 households from throughout the United States and are part of a new LRG study, Broadband Access & Services in the Home 2011. This is LRG’s ninth annual study of this topic.
Other related findings include:
– Those with broadband and no multi-channel video service have a household income 10 per cent below average, and 20 per cent below those with broadband and multi-channel video
– 14 per cent with broadband and no multi-channel video service paid for a video service in the past year, and 9 per cent with a TV set plan to subscribe to a service in the next six months
– 77 per cent with broadband and no multi-channel video service get a Telco broadband service
– 55 per cent with broadband and no multi-channel are very satisfied with their Internet service at home — compared to 69 per cent with broadband and a multi-channel video service
– 88 per cent of all households have at least one computer at home — compared to 74 per cent in 2004
– 84 per cent of all households have an Internet service at home — compared to 62 per cent in 2004
“While eight per cent of all households in the US get broadband but do not get a multi-channel video service, it is erroneous to think of this group as making decisions driven by online video,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “These decisions tend to be more based on economics, than about alternatives to traditional video services.”