Impact On Traditional Television Services
The convergence of content, technology, and broadband access allows consumers to stream television shows and movies to their high-definition television in competition with traditional service providers (Cable TV and Satellite Television). The research company SNL Kagan expects 12 million households, roughly 10%, to go without cable, satellite or telco video service by 2015 using Over The Top services. This represents a new trend in the broadcast television industry, as the list of options for watching movies and TV over the Internet grows every day. Research also shows that even as traditional television service providers are trimming their customer base, they are adding Broadband Internet customers. Nearly 76.6 million U.S. households get broadband from leading cable and telephone companies, although only a portion have sufficient speeds to support quality video steaming. Convergence devices for home entertainment will likely play a much larger role in the future of broadcast television, effectively shifting traditional revenue streams while providing consumers with more options.
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