The convergence of content, technology, and broadband access allows consumers to stream television shows and movies to their high-definition television in competition with pay television providers. 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 at a rapid pace.
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 streaming. 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.
According to a report from the researcher NPD In-Stat, only about 12 million U.S. households have either Web-capable TVs or digital media players connected to the Internet, although In-Stat estimates about 25 million U.S. TV households own a set with the built-in network capability. Also, In-Stat predicts that 100 million homes in North America and western Europe will own digital media players and television sets that blend traditional programs with Internet content by 2016.