Wednesday, May 02, 2018

52% of U.S. broadband households have a subscription to both pay-TV and one or more OTT video services

Connected entertainment research firm announces new OTT research ahead of workshop “Survivor’s Guide to the New Video World” at The Pay TV Show in May

Parks Associates today released the new Market Snapshot:OTT and Pay TV: Partnerships and Competition, which examines competition in the U.S. entertainment marketplace as partnerships between pay TV and OTT within the video space become more common. In this Market Snapshot, the research firm explores partnership strategies between pay-TV operators and OTT providers, which can enhance the user experience while minimizing the risks and marketing costs for each player.

“The nature of competition in video services has changed. Today, it is less about replacing competitors and more about how you complement others in the market,” said Brett Sappington, Senior Director of Research, Parks Associates. “Over one-half of U.S. broadband households have a combination of pay TV and at least one OTT service. Consumers are willing to carry multiple video accounts to get the content they want. Often they will select a preferred service with the content that they can’t do without and then select other video services that complement the high priority option.”

 

Pay-TV and OTT Service Subscriptions | Parks Associates

According to Parks Associates, 11% of U.S. broadband households watch over-the-air broadcast TV channels via an antenna, and pay-TV service subscriptions fell from 87% to 77% between 2012 and 2017. The rise of OTT correlates to a decline in viewership for live, linear TV channels. In particular, the audience for over-the-air broadcasters has diminished over time, especially among younger heads of household.

Additional research includes:

  • Approximately 33% of Cord Cutters would have stayed with their service provider if offered a Netflix-style service bundled with broadcast TV channels.
  • 5% of U.S. broadband households have never subscribed to a pay-TV service.
  • 8% of U.S. broadband households have recently downgraded their pay-TV service and supplement viewing with video on an internet-connected device.

Sappington, along with Parks Associates’ research analyst Hunter Sappington, will explore trends defining success in the new landscape for video services at the research workshop, “Survivor’s Guide to the New Video World,” sponsored by Espial, May 14 in Denver, at The Pay TV Show. The event features speakers from the companies Accedo, AirTV, ATN International, Espial, Newsy, Pluto TV, and TiVo, with the following sessions:

  • Welcome and Overview of Pay TV
  • Video Disrupted: The New Landscape for Video Services
  • Video Insight: Operating in the Age of Data Ninjas
  • Video Streamed: Lessons from OTT Video
  • Video Potential: Habits of Millennials, Cutters, and Nevers
  • Video Tomorrow: Innovations Fueling Future Video Services

To download this Market Snapshot, visit www.parksassociates.com/whitepapers. For information on The Pay TV Show workshop, go to http://www.parksassociates.com/paytv-workshop-2018. To schedule an interview or to request data, contact Julia Homier at julia.homier@parksassociates.com, 972.996.0214

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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