NPD: Nomadic Broadband Use On The Rise

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Port Washington, N.Y. - People connecting to broadband from locations outside of their homes will reach 154 million by 2015, nearly equaling in-home users, according to a new



The report, titled "Broadband Video: On Demand, On the Go, and On the Rise," is the first Inflection Report from Connected Intelligence, a new service from The NPD Group.

The report said that based on current trends, the number of in-home users is expected to reach 175 million by the end of 2015.

Mobile (on-the-go) broadband video users are also expected to grow, though not as quickly as out-of-home users.

There were approximately 6 million mobile broadband video users at the end of 2010, a number that is expected to grow to 77 million by the end of 2015.

"Over the next few years, broadband video usage will predominantly be driven in the home by Blu-ray players and connected televisions," said Ross Rubin, NPD industry analysis executive director and co-author of the report. "Handset manufacturers, though, have opportunities to tailor devices and software to the increasing prevalence of video."

Pay TV will be impacted by the growth of broadband video, but broadband video isn't likely to cause consumers to completely end their pay TV subscriptions, NPD said.

Only 4 percent of consumers surveyed said they have completely given up pay-TV service, while 9 percent said they have reduced the amount they spent on pay TV in the past year, and an additional 11 percent said they are likely to reduce their pay TV in the 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, NPD Connected Intelligence research director 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."


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