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TelcoTV 2010: Apple's Cord-Cutting Fanboys

11:50 AM -- LAS VEGAS -- TelcoTV 2010 -- Cord cutting may still be overblown, but according to new research from The Diffusion Group (TDG) , those consumers who own an iPad or intend to buy one are most likely to cancel their pay-TV service. (See IPTV Bogeymen: 2 Down, 1 Still Looms.)

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

sarahthomas1011 12/5/2012 | 4:18:54 PM
re: TelcoTV 2010: Apple's Cord-Cutting Fanboys

If you read Steve's story on Boxee (http://www.lightreading.com/do... and see who the attendees were at that event, you get a real clear picture of who the real cord cutters are.

shygye75 12/5/2012 | 4:18:51 PM
re: TelcoTV 2010: Apple's Cord-Cutting Fanboys

Maybe the i-happy cord cutters are ditching TV service because they need that money to pay for all their iStuff. This would imply that the iPeople don't have other gadgets, like large-screen HDTVs. We do live in interesting times.

sarahthomas1011 12/5/2012 | 4:18:44 PM
re: TelcoTV 2010: Apple's Cord-Cutting Fanboys

Or that they hook up their iPads to their fancy large-screen HDTVs, so they can get the content without paying a pay TV provider for the service.


Or that Jobs told them to cut the cord, and they do whatever he says...

scottmace 12/5/2012 | 4:18:13 PM
re: TelcoTV 2010: Apple's Cord-Cutting Fanboys

What is OTT? I'm stumped.

paolo.franzoi 12/5/2012 | 4:18:12 PM
re: TelcoTV 2010: Apple's Cord-Cutting Fanboys

 


OTT = Over The Top....


This is a reference to IP video running over broadband connections - Youtube, Hulu, Netflix, etc.  This term is used to differentiate from what you might call TelcoTV - example U-verse, which is sourced from the carrier.  Both of these are IP Video and can be IPTV offerings.  At the start of this whole online video thing there was lots of confusion between video offerings from the carrier and what we now call OTT video.


seven


 

paolo.franzoi 12/5/2012 | 4:18:12 PM
re: TelcoTV 2010: Apple's Cord-Cutting Fanboys

 


OTT = Over The Top....


This is a reference to IP video running over broadband connections - Youtube, Hulu, Netflix, etc.  This term is used to differentiate from what you might call TelcoTV - example U-verse, which is sourced from the carrier.  Both of these are IP Video and can be IPTV offerings.  At the start of this whole online video thing there was lots of confusion between video offerings from the carrier and what we now call OTT video.


seven


 

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