October 10, 2011
| by Rachel Cericola
We know that a lot of you have cut the cord this year. According to new numbers, that trend will continue well into 2016.
A new report by MagnaGlobal says that almost 9 million homes will drop traditional pay TV services by 2016. However, that doesn’t mean those homes will go without—or even go the OTA (over the air) route. About 4 million of those homes will turn to the web for their entertainment needs.
This is quite the increase, considering the magic number for 2011 was about 455,000 households.
Of course, it helps that people no longer have to huddle around a computer screen. Back in July, we told you that DisplaySearch said that over 25 percent of the TVs shipping this year would have some type web connectivity. Of course, you can get the upgrade without buying a new big screen; there’s always Roku, Boxee Box, and even gaming consoles.
MagnaGlobal says that the drop will boost Video On Demand services, which are expected to reach 65.7 million (55.7 percent) of TV households.
It will also have a reverse effect on DVR usage. Of course, if you drop cable or satellite, don’t expect to keep the company’s DVR. That said, the DVR isn’t going to go away anytime soon. In fact, both TiVo and Channel Master have recently announced products designed to deliver DVR to those without a service provider.
Instead, DVR adoption will just slow down a bit. MagnaGlobal’s July 2011 forecast said that the number of DVRs would reach about 63.1 million. The revised research now says that 57.5 million (or 48.7 percent of all households) would have a DVR by the end of 2016.
Over the past 15 years, Rachel Cericola has covered entertainment, web and technology trends. Check her out at www.rachelcericola.com.