American TV viewers are increasingly ditching cable and satellite TV providers in favor of online streaming options like those offered on the Xbox 360, PlayStation 3, and Wii U. A new report from Convergence Consulting Group found that in 2012, pay-TV outlets lost a total of about 1.08 million subscribers to streaming solutions like Netflix and Hulu.
The group believes that the total number of so-called “cord cutters” has reached 3.74 million since 2008, and will hit 4.7 million this year. Despite that, CCG analysts expect pay-TV to dominate the market for years to come. The 1.1 million defections last year accounted for just about 1.1 percent of their total customer base.
While more consumers are swayed by online solutions, they seem to be getting less value there than they used to. About 18 percent of the audience streamed free TV episodes online last year, down from 19 percent in 2011. With providers giving less content out for free, the group expects that number to decline to 17 percent for 2013.
Source: Bloomberg
