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Study: 1 in 8 US consumers will ditch or cut back on pay TV in 2010

By | April 30, 2010, 5:59pm PDT

Many have long suffered ever-increasing cable and satellite TV bills without much recourse, since competition has been weak, or nonexistent depending on your location. But the slow economic recovery and the growing availability of online video has apparently finally created an opportunity for consumers to scale down their pay-TV bills—or unplug their sets altogether—according to a new study.

A Yankee Group report finds that one in eight Americans is looking to cut back on his or her pay-TV service, whether that entails getting rid of premium channels or switching it off altogether. And it’s not too difficult to spot where those people’s eyeballs will wonder. As more TV programming moves to the Web, and as online video services like iTunes and Netflix’s Watch Instantly streaming grow in popularity, there are fewer reasons for a casual viewer to pay $100 per month for channels he or she isn’t ever going to watch.

Of course, eliminating the pay-TV line item from your budget may not be completely possible, as you may start paying to watch Hulu’s online service and you need to be a Netflix subscriber to stream movies. But you may wind up paying just $20 per month if you’re not addicted to your HDTV. And you’ll have more options to watch video on the go, rather than being stuck in front of a set.

Are you ready to ditch your cable or satellite TV service? Or do you still think it’s worth the money for your level of TV viewing (I’m talking to your, sports fans)? Let us know about your decision in our TalkBack section.

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Sean Portnoy is a freelance technology journalist.

Disclosure

Sean Portnoy

Sean Portnoy is a freelance technology journalist; currently, all work that Sean does is on a contractural basis. Sean has also written corporate communications documents for CA.

Sean does not accept gifts from companies he covers. All hardware products he writes about are purchased with his own funds or are review units covered under formal loan agreements and are returned after the review is complete.

Biography

Sean Portnoy

Sean Portnoy started his tech writing career at ZDNet nearly a decade ago. He then spent several years as an editor at Computer Shopper magazine, most recently serving as online executive editor. He received a B.A. from Brown University and an M.A. from the University of Southern California.

Talkback Most Recent of 40 Talkback(s)

  • Cable TV
    CONGRESS decided to hand cable a monopoly decades ago, and they charge whatever they want. Our government continues to sanction this cable rip-off without lifting a finger.
    It's little wonder consumers have so few alternate resources.
    ZDNet Gravatar
    proton_z
    30th Apr 2010
  • Cable companies are destined for extinction along with Apple
    Just used the Incredible, do like the N1 more cause its got the Google experience, but the Incredible is AWESOME.

    3GS and 4GS are only playing catch up, by the time 4GS and HD come along, Android is going to be so far ahead of the game. Its a no contest situation.

    Then, regarding the Market. Apple crossed (148Appsbiz info)
    Feb-09 --> 25K
    Jun-09 --> 50K (4Months later)
    Nov-09 --> 100K (5 Months later)
    May-10 --> 200K(6 Months later).
    Dec-10 --> 400K (7 Months later)

    In contrast Android (androlib info):
    Jan-10 --> 25K
    Apr-10 --> 50k (3 months)
    Jul-10 --> 100k (3 months)
    Oct-10 --> 200k (3 months)

    Apples development time is increasing. It took 6 months to duplicate the amount of apps it had available.

    Android development time is duplicating every 3 months average.

    By Feb-11 Android will have over 1 million apps and Apple will have only half as many.

    IF the current trends continue, this is the future. That is a big if!

    Regardless the amount of downloads and apps Apple has, its destined to become insignificant this year.

    Its relevance and technology development cycle seem to be headed the same way. Unless Apple comes out with something HUGE!

    Along with the advent of Android, streaming video and tethering have become a common thing. Like me last year, I see many people dropping their DSL service along with their cable service. It all comes through the cellphone now.

    These trends show that Apple along with TimeWarner, AOL, and all major Cable companies are destined to extinction.
    ZDNet Gravatar
    Uralbas
    1st May 2010
  • Android is newer
    How many versions of the same app do you need? Of course it's growing. But both will level off at some point in their OWN cycle.
    ZDNet Gravatar
    rasmasyean
    2nd May 2010
  • You won the award
    You have no taken over Ntstalker, or whatever his name is, as the most unfounded, incoherent, confusing, and downright ignorant posts any of us have read on Zdnet.

    You sir now have a won a "Dimmy" It is is a play on dimwit or simpleton.

    Just so I get it right...because you dropped DSL and have seen some others do it then all communcation comes through cell phones...you sir A GENIUS. Way to take a scientific approach to your analysis...the rest of garbled mess of numbers and stray sentences do not even add up to a pile of horse sh@*t
    ZDNet Gravatar
    ctunk
    2nd May 2010
  • Also
    I think you should contact someone that is a CCNA, CCNP, CCIE and see what they think the future holds!! Tethering is not a replace to NAT translations, ACL's, security, redundancy, and stability. As a matter of fact IT IS NONE OF THOSE THINGS. Since you put so many numbers and strange data points I thought you would understand the difference between IP classes and public vs. private networks and really HOW NETWORKS WORK. Just because you can get online by tethering (god I am lol) does not mean that a business or any home with more than 1 machine would find this suitable for their needs. God I feel dumb even explaining this to you. Because some people have 1 machine and like sitting on the public side of the internet..so be it...but not everyone fits that odd makeup.

    The wireless market is exciting for portable devices. The security risks are still quite unnerving for any real network admin. The stability is always an issue. And the fact how do I NAT a tethered address without some core networking equipment. Ironically, if wireless would take over the world Apple WOULD BE ENORMOUS. So your whole thought process is insane..but anyway...100 Mbps fiber is going to be linking us very soon...you can keep your 3G service and 1 computer!!

    Wired and wireless will work together for all time. There will always be the need for wired networks and wireless. It is not a competition..they compliment one another. Why is that so hard.

    The question is..do you think you are getting screwed by your cable company????? Just because you can get some crappy 3G service it is not a replacement to traditional networks which even most home networks are now as complex as some corporate network of years ago. People web host...yea..people like me can actually NAT services behind our firewalls and be A PART OF THE NET vs. use the net.
    ZDNet Gravatar
    ctunk
    2nd May 2010
  • I only have High Speed Internet with Bright House.
    I use Netflix (movies and TV shows) and Live365 (Internet Radio Station).

    I do want to watch Green Planet HD, as they have some interesting shows for me to watch in widescreen, but I don't want to pay too much just to have that one channel. There are some other interesting channels for me to watch on which I can only get the high-end package; unfortunately, I'm a college student and I don't have time to apply for a job...

    Now, if there are any episodes in high-def and widescreen that talks about the home of the future, like home automation, home theater, kitchen appliances, etc., that'd be very cool for me to watch. I do watch New Yankee Workshop, but only rarely (during the time of writing).

    Speaking of home automation, I thought about getting a couple of Z-Wave lamp modules to replace some of my Insteon modules, but I thought I might wait until I go with ZigBee-based home automation when manufacturers might release home automation products for consumers.

    Well, I know this is not a home automation talkback as it's about cutting back or canceling TV services that they may not need anymore. I kind of missed ZDTV when I was in a hotel near the beach in Pensacola (or Panama City but I can't remember -- it's been so long since I've been to the beach with my family). In my opinion, I tend to think that times were good, but one thing that I didn't know is ZDTV changed to TechTV before Comcast bought it and called it G4, a gaming TV station for game reviews and game-related content. I really don't care that much about it... sad

    Anyone for "TheScreenSavers.com?" I thought I remember the correct spelling, but I might ask just to be sure.

    (Hmm... I thought I'm the first to post my comment in this Talkback, although my comment did not go through and returned me with an error message... Oh well. It happens while I was going to read about TechTV (I missed that red diamond with a "TV" next to it) after I post my comment but I had to repost a second time.)
    ZDNet Gravatar
    Grayson Peddie
    30th Apr 2010
  • Every cloud has a silver lining.
    Watch less, get more informed.
    ZDNet Gravatar
    Agnostic_OS
    30th Apr 2010
  • Hallelujah
    Watch less, get more informed.

    Hallelujah bruddah
    ZDNet Gravatar
    klumper
    1st May 2010
  • Wrong question
    Are you ready to ditch your cable or satellite TV service?

    This implies that we have a service to ditch. It's not like going off-grid, after all. Some of us never saw it as worthwhile to begin with.
    ZDNet Gravatar
    Yagotta B. Kidding
    1st May 2010
  • Hallelujah again
    Some of us never saw it as worthwhile to begin with.

    wink
    ZDNet Gravatar
    klumper
    1st May 2010
  • Bingo.
    nt
    ZDNet Gravatar
    IT kibitzer
    3rd May 2010
  • Can't ditch what i haven't had or needed...
    ... for the last three years or so happy
    ZDNet Gravatar
    bearded-grey
    3rd May 2010
  • price hikes are crazy!
    After living without cable tv for two weeks. I can honestly say I did not mis it at all. I watched what I wanted online or dvd through netfix and hulu. as for cable if they keep raising the prices every six months no one will be able to afored them and they will price them selves right out of the picture. after all, is cable not one of the oldest technologies out in the world today. why is it so expensive?
    ZDNet Gravatar
    dpt308
    1st May 2010
  • Liscensing
    It's not the technology. It's the IP. To compete, they need to get more and more channels and services and on demand listings. Everyone has to get paid even though you don't watch everything. You pay for the option to watch everything.
    ZDNet Gravatar
    rasmasyean
    2nd May 2010
  • The problem is that most of the "everything" I am paying for is crap.
    Even on a "basic" package, 80% of the 100 or so
    channels that I am offered is complete garbage
    that I resent paying for. It's difficult to call
    it "intellectual property" when so little of it
    represents so little intellect.
    ZDNet Gravatar
    JohnMcGrew@...
    3rd May 2010

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