Analyst: Paid OTT seen as pay-TV substitute

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Video OTT and pay-TV research from analyst firm Parks Associates shows that consumer perception of a poor value proposition in pay-TV remains the top trigger for changing, downgrading, or cancelling services. Among households that have made pay-TV changes in past 12 months, one-third of cord cutters and 10 per cent of switchers or cord shavers plan to use paid OTT services as a substitute or alternative for pay-TV.

“The primary driver for pay-TV cancellation and downgrades continues to revolve around pricing and perceived value. While some consumers consciously plan to use OTT video services to address the absence of pay-TV content, most consider each offering on its own merits,” said Brett Sappington, Senior Director, Research, Parks Associates. “The deeper issue is in the influence that OTT video services have on what consumers consider to be a ‘good’ value. When video services with good quality are available for under $15, it forces operators to justify an $80 pay-TV bill.”


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