TelcoTV 2010: Apple's Cord-Cutting Fanboys
More than one third of iPad owners are, to varying degrees, likely to cancel their TV subscriptions in the next six months, which is three times the rate for the average adult broadband user. Of that 33.9 percent, 12.9 percent are highly likely to cancel, TDG says.
The results are interesting considering the big focus on over-the-top video at TelcoTV this week. Even Motorola Inc. (NYSE: MOT) GM Alan Lefkof admitted the iPad was the best device for third-screen viewing. But his point was that it, along with other tablets, is the perfect companion device to the TV, not replacement. (See Over the Top in Toledo and TelcoTV 2010: Future of TV Is Tablets, Moto Says.)
TDG's results could just indicate that iPad owners are more tech savvy and aware of OTT alternatives that encourage "cord shaving," a term Verizon Communications Inc. (NYSE: VZ)'s Joe Ambeault coined to describe what really is happening -- consumers ditching some TV time for OTT. (See TelcoTV 2010: Verizon Takes a Flex View of the Cloud.)
But, they also suggest TV providers need to do more to keep consumers engaged on the big screen or else tie the experience to the smaller screen in a way that doesn’t make it an either-or proposition.
— Sarah Reedy, Senior Reporter, Light Reading Mobile