A new study by the Yankee Group predicts that one in eight US pay TV subscribers will ditch their services in 2010.
The report attributes the expected reduction to the growing popularity of video content services on the internet.
Other factors mentioned in the report are the continued rise in prices of services, the popularity of connected TVs and the high take-up of devices that can perform STB-like duties such as the Microsoft Xbox 360, Sony Playstation 3 and Nintendo Wii games consoles.
“At the most basic level, the decision to cut off pay TV services is an economic one,” said Vince Vittore, principal analyst and co-author of the report. “As programmers continue to demand ever higher fees, which inevitably get passed on to consumers, we believe more consumers will be forced to consider cutting their pay TV services.”
The report also found that pay TV subscriptions are beginning to flatline with growth between 2010 and 2013 in Western Europe at just 3.9 percent and just 6.9 percent in the US during the same period.