As many as 7 million people might cut the cord once HBO launches its new streaming service later this year. At least that’s how a market research firm read the numbers from its recent online survey.
Such a mass exodus, if it were to occur, would be a huge blow to pay TV companies like Comcast, Time Warner Cable and DirecTV. About 100 million households in the U.S. subscribe to TV.
But don’t set your timers to mass cable exodus just yet. The report from Dallas-based market researcher Parks Associates is based on an online survey of 10,000 people in U.S. homes with broadband access from late last year. And even Parks Associates suggests this drastic scenario might not actually happen.
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When HBO announced the new service at an investor conference last fall, executives emphasized that it was going after the growing number of broadband-only homes, not existing pay TV subscribers, and that the standalone service shouldn’t threaten TV subscriptions.
“I don’t think we’re going to cannibalize anything,” HBO CEO Richard Plepler said at the conference. “I think we have a tremendous opportunity to go after [new subscribers].”
