ABI Research: Online video seen as multi-billion dollar threat to pay TV revenues

Nearly 20 percent of online consumers thinking about replacing pay TV
October 24, 2012 | By

The old cord-cutting argument has come around for another turn thanks to the ABI Research Technology barometer study that says cord-cutters–or at least consumers who dump pay TV for online video–could cost MVPDs (multichannel video programming distributors) about $16.8 billion.

The research predicts that U.S. pay TV household penetration will decline about 0.5 percent per year through 2017, even if the economy recovers, because “consumers have additional entertainment choices like improved online and over-the-top (OTT) video experiences.”

It could be said, of course, that many MVPDs are already following ABI’s advice on how to combat this trend via their own OTT-like services, or what ABI calls “lightweight Pay TV offerings.





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