Friday, June 12, 2015

8.4 Million US Households Subscribe to Broadband Video, Shun Pay TV

About 7% of all U.S. households subscribe to broadband service and at least one streaming video service (called over-the-top, or OTT, in the industry), but do not subscribe to pay TV either over a cable or a satellite connection. That represents about 8.4 million U.S. households.

The total includes consumers who have cancelled pay-TV subscriptions and those who have never had a subscription. According to research firm Parks Associates, the 7% rate in the United States is close to an average rate of around 4% in other developed countries.

To try to stop the bleeding, pay-TV operators have begun offering their own OTT products. Satellite operator Dish Network Corp. (NASDAQ: DISH) introduced a $20 a month Sling TV product, and cable giant Comcast Corp. (NASDAQ: CMCSA) also offers a low-priced OTT package. Even telecom giant Verizon Communications Inc. (NYSE: VZ) tried to jump into the OTT market with its light-weight channel bundles and got a lawsuit from Walt Disney Co.’s (NYSE: DIS) ESPN network for its trouble.

From the article "8.4 Million US Households Subscribe to Broadband Video, Shun Pay TV" by Paul Ausick.

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