Yankee Group has identified a new category of consumer: the coax-cutter. These consumers cut off their pay TV services and use their PCs, gaming consoles and other connected devices to access video programming instead. One in eight consumers are set to join their ranks in the next 12 months.

Yankee Group reports that the number of coax-cutters will grow due to three main factors: a new wave of connected TVs, ever-escalating pay TV prices and the advent of connected consumer devices that can act like set-top boxes, including Sony Playstation 3, Nintendo Wii and Microsoft Xbox 360 gaming consoles.

“At the most basic level, the decision to cut off pay TV services is an economic one,” says Vince Vittore, principal analyst and co-author of the report. “As programmers continue to demand ever higher fees, which inevitably get passed on to consumers, we believe more consumers will be forced to consider coax-cutting.”

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