Analyst: SVoD subs increasingly via pay-TV provider

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Findings from research and consulting firm Parks Associates indicate that 21 per cent of US pay-TV subscribers say they subscribe to an online video service through their pay-TV provider, up from 10 per cent a year ago. The company attributes this jump to the increasing number of partnerships between pay-TV and OTT providers, with operators such as Comcast adding support for Netflix in their set-top boxes.

“The number of ‘Cord Never’ households (which have never had pay-TV service) is increasing slowly, but those who have sampled pay TV are testing new alternatives,” said Brett Sappington, Sr. Director, Parks Associates. “The percentage of those open to cancelling pay–TV or minimising their monthly spend on pay-TV is also up. This ongoing shift is affecting all aspects of service design, promotion, packaging, and pricing. As a result, operators are having to reassess their technology and content investments as well as their partnerships and go-to-market strategy.”

Other highlights from Parks Associates’ new consumer study, 360 View: Access and Entertainment in U.S. Broadband Households, include:

  • Pay-TV subscription rates dropped from 86 per cent in 2015 to 77 per cent in late 2017.
  • 84 per cent of pay-TV subscribers have service from a traditional cable, satellite, or telco provider.
  • Nearly 18 per cent of pay-TV households have a subscription package from an online video service, e.g., Sling or a traditional provider now offering an online video bundle.

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