According to Parks Associates’ "Online Video and Broadband Provider Strategies," the number of U.S. broadband households watching premium online content doubled in the last year. Over 25 million U.S. broadband households regularly watch full-length TV shows online, and over 20 million watch movies online.
“Connected CE devices are affecting the competitive ecosystem of the television industry, and while the current number of cord cutters isn’t substantial, service providers are concerned about these developments,” said Jayant Dasari, research analyst, Parks Associates, in a statement. “Pay-TV providers are working to head off a possible shift that might devalue their services by offering TV Everywhere."
Parks’ research found that consumers have yet to establish strong preferences on whether they get video and other value-added services from broadband service providers or over-the-top providers such as Hulu. Service providers can leverage this consumer neutrality and reposition themselves as media companies.