Wednesday, September 12, 2012

Home Ownership Of TV Declining

The creeping effect of cord-cutting is happening.  It may take a decade or longer to be truly felt, but homes are dropping their TV and favoring other devices for entertainment.  "TV penetration stands at 95.8 percent of households, down from a high of 99 percent two years ago. Last year, Nielsen recorded the first such drop in TV households — defined as those with at least one TV set that receives signals via cable, satellite or old-fashioned rabbit ears."  So in two years, a penetration drop of over 3 percent in what is been characterized as a growing trend.  Should that trend grow annually, in 5 years, TV penetration could drop below 90% within 5 years.

Why could that be true?  Older Americans are TV staples, younger generations are preferring their broadband connection to their TV channel line-up.  This same group also has a growing preference for their Xbox, their You Tube, and their mobile screens.  Still, the TV in the home will not go away.  It's cable or antenna connection will likely be replaced by a broadband feed.  The consumer will have more choice what to subscribe to and what to watch free.  And at the end of the day, the price for an all you can eat cable model will only continue to get more and more expensive.