DALLAS, TX – Approximately one-fifth or 20% of Canadian television service subscribers downgraded their service over the last 12 months, with many opting for an Internet video option instead, according to a new research report from Parks Associates.
The report, Video in Canadian Households, analysed the market for subscription home video services via an online survey of 1,500 Canadian broadband households in the last quarter of 2013.
Among Canada’s nine largest TV service providers, nearly one-third (29%) of Telus Optik TV subscribers said that they had downgraded to a less expensive TV package with fewer channels or features in the last year. That was followed by 23% of Bell Fibe TV customers; 21% of Rogers customers; 20% of Shaw Cable customers; 19% of Eastlink customers; 18% of both Bell Satellite TV and Videotron customers; 17% of Cogeco customers and 13% of Shaw Direct/Star Choice customers.
Approximately one-third (32%) of those who downgraded their service did so because they planned to use Internet video instead. Of those ‘cord-shavers’, 47% were Rogers customers; 28% were Telus Optik TV and Bell Satellite TV subscribers; 24% were Shaw Cable customers and 16% were customers of Videotron.
Nearly half (46%) of those downgrading switched to a lower tier service, the report continues. Thirty-five percent said that they dropped a theme package of specialty channels; 28% said they dropped premium movie channels; 17% dropped a-la-carte channels; 14% dropped premium sports packages; 13% reduced the number of TVs with service and 12% dropped language-specific channels. Those who dropped adult channels and those who reduced the number of PVRs were both at 7%.
“The growing use of online video, including both licensed and unlicensed sources, is putting pressure on the low end of the Canadian home video market”, said John Barrett, director of consumer analytics, in the report’s press release. “For middle-and high-end customers, online video provides an over-the-top alternative to premium channels and higher-tier packages.”
