Report: Cord Cutters Tuning In to Online Video on the TV

Written by Ryan Lawler

Friday, July 31. 2009 at 03:05 PM EDT Post a comment

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The number of consumers in U.S. that have cut back on pay-TV services is still relatively small, but there's increasing evidence that those so-called cord cutters are turning to broadband video services as an alternative.

According to two recent reports by the Pew Internet & American Life Project, consumers are much more likely to cut back on cable subscriptions than broadband Internet service. And those that have cut the cord are much more likely to be watching Internet video on their TV sets than those that haven't.

About 22 percent of Americans say they have reduced their spending on cable TV services over the past year, according to Pew's "Home Broadband Adoption Report." That compares to 9 percent of Americans that have cut back on broadband Internet services.

But here's the kicker: Nearly a third of those who are paying less for cable video are connecting a computer to their TVs to watch online video through their broadband connection, according to Pew's research for its "Audience for Online Video-Sharing Sites" report. That compares with 23 percent of all online video viewers that connect a computer to their TVs.

Furthermore, more and more online video viewers are tuning in to TV shows and movies online. Pew reports that 35 percent of all video viewers are already watching long-form programming online. The number is even higher among youngsters -- approximately 61 percent of those aged 19-29 say they watch movies and TV shows online.

The findings could have serious implications for cable companies, particularly as more and more consumer electronics devices are equipped with broadband connectivity and content services built in -- making it easier than ever to watch online video over-the-top.