There’s a new report out this week (to be filed in the “Duh” folder…right next to “No Kidding”) showing that some 2.6 million cable television subscribers cancelled their service in favor of Internet-based streaming services between 2008 and 2011.
Reported by Slashdot, Yahoo and others this morning, Canadian research firm Convergence Consulting Group summarized the following from their…well, research:
“We estimate 112,000 TV subscribers were added in 2011, down from 272,000 in 2010, and forecast 185,000 TV sub additions for 2012. 2000-2009 annual TV sub additions averaged 2 million. Based on our TV Cord Cutting Model (takes into account economic conditions, annual subscriber additions, digital transition), we estimate 2.65 million (2.6%) US TV subscribers cut their TV subscriptions 2008-11 to rely solely on Online, Netflix, OTA, etc, 1.05 million (1%) in 2011 alone. We forecast cord cutters will reach 3.58 million year end (3.6%) 2012.”
So, essentially, folks are fleeing traditional television for streaming services in decent numbers, but those numbers seem to be slowing. News reports on this are rounding up the typical line-up of culprits for this dialing-back on the rush to streaming – content limitations of streaming services (a.k.a. ‘ I can’t believe Netflix doesn’t have so-and-so) based on sluggish deals being struck by Netflix and others with studios and networks; and the ultimate price-tag of achieving a more robust catalogue of content will break the cost model for places like Netflix and their service will become prohibitively expensive. [Read more…]