April 11th, 2016
Mitchell, SD – Much has been reported on the national trend of “cord cutting,” or homes eliminating their cable or satellite service and accessing all of their television content by streaming video over the Internet. According to Nielsen, approximately 8% of homes have cancelled subscription video in favor of over-the-top options.
This national statistic is heavily biased by the 80% of Americans who live in urban and suburban areas (U.S. Census Bureau). Rural demographics are much different with an older average age, fewer children in the home and less access to broadcast channels that can be picked up by antennae. Innovative Systems, a software and technology company, based in Mitchell, SD, commissioned a survey of rural homes to determine the status of subscription video and to quantify the impact of streaming specifically in these markets. The study also examined Internet access, as it directly affects the ability to stream and the likelihood of cutting the video cord.
This exclusively rural survey conducted by the national telecom research firm Cronin Communications, found that subscription video is not declining in rural markets at the same rate as in urban and suburban areas and not for all of the same reasons. Only 1% of rural homes rely exclusively on over-the-top content. Some 400 phone surveys of customers served primarily by rural independent communications companies revealed results somewhat contrary to other surveys that are more urban focused.
Highlights of the research:
- Subscription video in rural America now stands at 82% of homes. Thirteen-percent of homes are antennae-only, 1% are OTT only and 4% have no television.
- For those who maintain subscription video, they spend an average of $90.64 per month; have had their accounts for 11.83 years; and have 2.63 working televisions.
- Twenty-three percent (23%) of rural homes stream video from the Internet an average of 7.59 hours per week.
- Seventy-five percent (75%) of rural homes have Internet service.
- The average home spends $51.78 per month on Internet access (not including cellular).
For a free copy of the 40 page survey, please click here and include your mailing address as we do not send out digital copies of this report.
About Innovative Systems
Innovative Systems offers the APMAX™ IMS Application Server, the only platform in the industry that delivers enhanced voice services and IPTV video solutions. Innovative Systems also has eLation™, a fully integrated OSS solution which includes billing, financials, and staking and mapping applications. With over 1,200 systems in service throughout North America, Innovative Systems is one of the leading suppliers of telecommunications hardware and software for the Independent Communications Market.