Although consumers have not been cutting the cord of their pay-TV service in the numbers some operators feared, changes to consumer behaviour and the status quo are occurring, according to a new report from ABI Research, which surveyed 2,000 consumers in the US.

“In a relatively fragmented connected consumer electronics market, the pay-TV package is still the best means to get the widest range of content," commented Jason Blackwell, practise director at ABI Research. "In addition some programming such as sports and premium content is still pay-TV centric, even with TV Everywhere initiatives.”

Many consumers with connected devices are viewing online content, with an average of between seven and eight hours of weekly programming streamed to connected CE devices, according to the research firm.

“Now is the time for pay-TV operators to act," added Mr Blackwell. "Currently the services on connected CE platforms are commanded by a few early leaders. Netflix and YouTube, for instance, are the clear consumer favourites for online video, while the divide is even greater for social networking where Facebook captures 97% of social networkers on CE devices (compared to 32% for MySpace, the next closest competitor).”

In addition, the penetration rate of key connected CE devices such as TVs is currently low, with 11% of survey respondents reporting they own such a device, and ABI Research believes this is creating room for competition and growth.

Source: IPTV News