[Satellite TODAY Insider 04-05-11] More than 2 million households in the United States will cut their cable and satellite TV subscriptions in favor of online TV platforms by the end of this year, according to a Convergence Consulting Group research report released April 4.
    The study, "The Battle for the North American (U.S./Canada) Couch Potato: Online and Traditional TV and Movie Distribution," showed that online and OTA services, such as Netflix, could be eating away at cable and satellite’s new subscription rates. Convergence estimates that 300,000 TV subscribers were added in the United States in 2010, a significant decrease from the 1.8 million subscribers the industry added in 2009. Convergence, however, sees that number increasing to 630,000 TV subscriber additions for 2011.
    "Broadcast and cable networks are aiming to grow online advertising revenue and emerging channels without negatively impacting programming sales to cable, satellite and telcos," the study said. "We estimate that the 2010 U.S. online advertising market reached $25.7 billion – a 10 percent increase over 2009. Our forecasts also project that the advertising market will reach $28.5 billion in 2011. Cable, satellite and telco-access provider TV subscription revenues grew 6 percent to $89 billion in 2010. The average TV subscriber home pays its’ access provider $74 per month and watches 240 hours of TV. This equates to $0.31 per hour or $0.62 for a single person."
    While Convergence projects that cable/telco video-on-demand revenues likely will grow by 11 percent in 2011, it also suspects that cable, satellite and telco TV access providers’ offerings will continue to see shorter windows.