Survey Says: Cord-Cutting Has ‘Minor Impact’

WESTLAKE VILLAGE: And now, a word from J.D. Power and Associates on a decline in pay TV subscriptions:

Amid debates regarding how U.S. consumers will view video content in the near future, just 3 percent of pay-to-view customers report having “cut the cord” and canceling their television service in favor of other viewing options. This is according to the J.D. Power’s 2011 U.S. Residential Pay-to-View Study released today.

Cord-cutting was said to vary by generation. Six percent of Generation Y customers--ages 17-34--cancelled, compared with only 2 percent of Baby Boomers, ages 47-65. One percent of customers 66 to 86 report cut the cord, while 4 percent of Generation X customers ages 35-46 did so.

“The predictions of the demise of television subscription service as we know it are clearly premature,” said J.D.’s Frank Perazzini. “The popularity of services such as Netflix and Redbox is a clear indication that consumers are enjoying the availability of alternative viewing options. However, with 52 percent of television customers reporting that they still watch regularly scheduled programming as it is broadcast, the current model will remain viable for the next two to three years, at a minimum.”

The study revealed that 27 percent of pay TV users also watched video on handheld devices. Mobile phones accounted for 15 percent of the total. Tablets accounted for 12 percent; music players, another 12 percent. J.D.’s survey flackage didn’t round out a full accounting.

J.D. said its results comprise responses from 6,815 households pinged in April.