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Survey: Beware the iPad

Thu, 11/11/2010 - 7:10am
Brian Santo

It may be that the phenomenon of cord cutting is far over-estimated, but anecdotal evidence suggests that it does happen. With so few numbers, the question remains: Who are these people?

Many of them, it turns out, are iPad users and those ready to get an iPad, at least according to research from The Diffusion Group (TDG). Those two groups are significantly more likely than average adult broadband users to either downgrade or cancel their pay-TV service.

About one-third of the people who now own an iPad say they're likely to cancel their pay-TV service, and another quarter say they're likely to downgrade their pay-TV packages.

"Despite the fact that cord cutting remains more widely discussed than carried out, forward-looking research continues to accumulate in support of the hypothesis that specific groups of consumers are quickly warming to the idea," notes Michael Greeson, TDG's founding partner and director of research. "Certainly this applies to iPad owners and intenders."

TDG's research results are a little tenuous in that they reveal more about attitudes and intentions than actions, but the findings may still be instructive.

The research shows that about one-third of iPad owners (33.9 percent) are to varying degrees likelyto cancel their pay-TV service in the next six months, more than twice the rate among iPad intenders (13.5 percent) and three times the rate among average adult broadband users (9.6 percent).

Among iPad owners, 12.9 percent are highly likelyto cancel in the next six months, twice the rate among iPad intenders (6.4 percent) and three times the rate among average adult broadband users (4.3 percent).

In terms of downgrade proclivities, 35.5 percent of iPad owners and 29.5 percent of intenders are to varying degrees likelyto downgrade their pay-TV service in the next six months, compared with 20.7 percent of average adult broadband users.

And 27.4 percent of iPad owners are highly likely to downgrade their pay-TV service in the next six months, compared with 14.2 percent of iPad intenders and 10 percent of average adult broadband users.

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