The NPD Group, who I like for their monthly video game sales charts, have thrown their hat into the online video research arena. They've just released a new report called Broadband Video: On Demand, On the Go, and On the Rise in conjunction with Connected Intelligence, which states that nomadic online video consumption will rise sharply. Now this is different than mobile video and different than home video, it's that sort of pseudo-category of people who use Wi-Fi hotspots instead of mobile 3G and 4G data networks while out and about to watch their streaming video.
According to the report, there are only about 100 million home-based online video users of premium content currently. Considering Netflix has some 25 million alone, that might be a bit on the low end. They predict that number will rise to almost 180 million or roughly 55-60% of the US population in 2015 (depending on population growth that could be a lower percentage).
In that same year, they believe that those aforementioned streaming video nomads who consume premium content will climb to nearly 160 million. That's nearly four times what it is today while home users will probably just double.
Mobile sees the least amount of users peaking at around 77 million users in 2015 but quadrupling from 2010's 6 million; in five years that's a twelve-fold increase.
Given the fact that mobile phones are becoming stronger, with bigger screens and mobile data networks are continuing to grow in speed... I can see that.
Cord Cutting Not Prevalent
Also in the report, in which they surveyed actual people, 4% said they've cut the cord and 9% have reduced their pay TV spend while another 11% said they'll probably reduce that next year.
"The reduction in pay TV, or cord shaving, is really just a way for consumers to cut back on their monthly entertainment bills, for now," said Linda Barrabee, research director, Connected Intelligence at NPD and co-author of the report. "It actually sets the stage later on for broadband video usage to grow as consumers get back into the premium content market but look for less expensive alternatives."
Really? Cord shaving? That just sounds dumb doesn't it? Cord pruning, Cord thinning sound equally dumb though. How about Stream growing or view shifting (I suppose that's generic and then you'd have to describe from and to where the shifting is occurring). Regardless of the verbiage, it doesn't appear from NPD's research that cord-cutting is all that prevalent, nor is it motivated by much more than the current economy.