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8% OF U.S. HOUSEHOLDS GET BROADBAND BUT NOT MULTI-CHANNEL VIDEO

Online Video is Not a Key Driver for This Group

Durham, NH -- July 25, 2011 -- New consumer research from Leichtman Research Group, Inc. (LRG) finds that 8% of US households get a broadband Internet service, but do not subscribe to a multi-channel video service, while 70% of households get both broadband and multi-channel video services.

Among this group getting broadband but not multi-channel video, the reason for not subscribing to a multi-channel video service is generally not driven by online video. Just 5% of this group doesn't subscribe to a multi-channel video service because they can watch all that they want on the Internet or in other ways, and 2% specifically mention Netflix as a reason for not subscribing. In contrast, 28% cite cost, 26% say that they don't watch much TV, and 18% say that they have no need for a service.

In addition, this group does not tend to watch online video significantly more frequently than others, nor do they rate the ability to watch online video as being significantly more important in their decision to get broadband than others do.

  • 19% with broadband and no multi-channel video service watch online video daily, and 55% weekly -- compared to 17% daily, and 48% weekly among those with broadband and a multi-channel video service
  • 41% with broadband and no multi-channel service rate the ability to watch video online as very important in their decision to get broadband -- compared to 37% of those with broadband and a multi-channel video service

These findings are based on a telephone survey of 1,500 households from throughout the United States and are part of a new LRG study, Broadband Access & Services in the Home 2011. This is LRG's ninth annual study of this topic.

Other related findings include:

  • Those with broadband and no multi-channel video service have a household income 10% below average, and 20% below those with broadband and multi-channel video
  • 14% with broadband and no multi-channel video service paid for a video service in the past year, and 9% with a TV set plan to subscribe to a service in the next six months
  • 77% with broadband and no multi-channel video service get a Telco broadband service
  • 55% with broadband and no multi-channel are very satisfied with their Internet service at home -- compared to 69% with broadband and a multi-channel video service
  • 88% of all households have at least one computer at home -- compared to 74% in 2004
  • 84% of all households have an Internet service at home -- compared to 62% in 2004

"While 8% of all households in the US get broadband but do not get a multi-channel video service, it is erroneous to think of this group as making decisions driven by online video," said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. "These decisions tend to be more based on economics, than about alternatives to traditional video services."

About Leichtman Research Group, Inc.

Leichtman Research Group, Inc. (LRG) specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.

Broadband Access & Services in the Home 2011 is based on a telephone survey of 1,500 adults age 18+ from throughout the continental US that was conducted in April-May 2011. The random sample of respondents was distributed to best reflect the demographic and geographic make-up of the US. The overall sample has a statistical margin of error of +/- 2.5%.

Click here to download a printable version (in PDF® format).
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