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Credit Suisse: 20% US subs could cut cord

September 20, 2011

Credit Suisse says 20 per cent of US pay TV subscribers might cut the cord – but the reason will be mostly the economy, not OTT services. It says about 25 per cent of US consumers do use OTT services but more than half of them use it to compliment their pay TV. The bank found 4 per cent of current subscribers are seriously considering cancelling in the next year.

Among those who don’t have a pay TV subscription, half said it’s because of the high costs of such services, while 22 per cent said they don’t watch enough TV, 16 per cent said they just watch broadcast and 14 per cent said they don’t find pay TV channels compelling.

According to Credit Suisse analysts the reason for cord cutting is “is the declining value proposition for a portion of the customer base, not over the top services, in and of themselves.” Cable or DTH subscriptions in the US are routinely as treble figure monthly purchase for households.

The findings were based on a survey of 2,075 consumers conducted in August 2011.

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