Informa estimates that there were 1.2 million "cord-cutters" who have canceled their multichannel video subscriptions in favor of over-the-top video alternatives in 2010, equivalent to just 0.18% of the multichannel video subscriber base. See more detail here.
"While the impact of cord-cutting on pay TV has been extremely limited to date, this will change as OTT services will continue to improve and become increasingly attractive," said Adam Thomas, Informa Telecoms & Media senior analyst.
The number of cord cutters will grow to 16.1 million in 2015, the firm says. That's about two percent of the total pay TV subscriber base," said Thomas.
There are about 426,000) video cord cutters in the United States, about 395,000 in Europe, 251,000 in the Asia and Pacific region and 113,000 in the rest of the world. It is possible that less developed markets could ultimately be most vulnerable to the allure of OTT, as several of these markets are characterized by higher broadband penetration than that of multichannel video service penetration.
"We are already seeing significant numbers of cord-cutters in China, as households are attracted away from cable and IPTV by OTT services such as Tudou and Youku," said Thomas.
Overall, Informa does not seem to expect a massive disruption of the linear video business anytime soon, despite the growing expectation in many quarters that this will be the case.
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