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OTT Services Make Pay TV Look Like a Poor Value, Parks Finds

When consumers can get a streaming video service with live channels and an on-demand library for $15 per month, their $80 per month cable or satellite service starts to look like a poor value. That's one finding from Parks Associates, which revealed video OTT and pay TV data today.

Looking at households that have changed their pay TV service in the past year, Parks finds 33 percent of those cutting the cord and 10 percent of those trimming their service see streaming options as a substitute for pay TV. Streaming is emerging as a better value for many viewers.

"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," says Brett Sappington, senior director of research at Parks Associates.

From the article "OTT Services Make Pay TV Look Like a Poor Value, Parks Finds" by Troy Dreier.

Previously In The News

Roku Shares Soar in Streaming-Device Maker’s IPO Debut

Roku faces massive, deep-pocketed competitors — but so far the 700-employee company has more than held its own in the streaming-media device market. In the first quarter of 2017, Roku had 37% share of...

Apple’s Video Streaming Plans: Key Open Questions

There were 221 active over-the-top (OTT) services in the US in 2018, up from 199 in 2017, per Parks Associates. And this figure is slated to increase as Disney, WarnerMedia, NBCUniversal, launch their...

No more family freeloaders: Netflix to charge extra for sharing accounts

The trial is part of the streamer’s ongoing campaign to ensure revenue is not lost as the streaming space has grown increasingly competitive. According to an analysis by research firm Parks Associates...

Bloomberg Attacks Apple TV As Failing To Be "A Groundbreaking, iPhone-Caliber Product"

According to U.S. market research published by Parks Associates last summer, Amazon media player products narrowly out-shipped Apple TV (for a 22 vs 20 percent share of the market) in 2015, but that a...

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