Providing Market Intelligence for 40 Years

In The News

Parks: Nearly Half of U.S. Broadband Homes Have Cut Pay-TV Cord

Parks Associates’ latest data finds that 56 million (46%) of U.S. internet households have severed ties with their premium television provider, underscoring the dominance of streaming video services. Another 12% of U.S. broadband households have never subscribed to any sort of traditional pay-TV.

Parks says service providers are adapting to the secular changes by offering competitive pricing, bundling options, and hybrid monetization strategies. The rise of ad-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) services underscores the demand for lower-cost alternatives, and subscription-based platforms continue to experiment with tiered pricing and content exclusivity to retain customers, according to Parks.

“Cord Nevers represent a unique opportunity for streaming providers,” Jennifer Kent, VP of research at Parks, said in a statement. “By definition, this segment of the market has not paid for traditional TV, but streaming services have found a way to monetize a segment that has not previously valued subscription video or has grown up in a streaming-first market, with different conceptions of what subscription video should be.”

Parks reports that 59% of subscriptions across the eight leading SVOD services — Max, Netflix, Disney+, Discovery+, Paramount+, Prime Video, Hulu and Peacock — are basic with ads.

To achieve profitability and strike a balance for consumers, Parks said the most-popular streaming services now operate under a hybrid model, offering both ad-free and ad-supported plans to viewers. Ad-based tiers are cheaper for consumers and more profitable for businesses, making them a win-win for both parties.

“Consumers are worn down from continued spending increases in streaming, while years of high inflation are driving consumers to pare down accordingly,” Kent said in a statement. “This only intensifies the competition among streaming vendors and will fuel more growth of subscription tiers with ads and free ad-based services.”

From the article, "Parks: Nearly Half of U.S. Broadband Homes Have Cut Pay-TV Cord" by Erik Gruenwedel

Previously In The News

4K And HDR Won’t Save Apple TV: Here’s How The Company Can Turn Things Around

Who knows? Maybe the Apple TV has appeal. But the numbers show otherwise. According to new data from research firm Parks Associates, 37 percent of all streaming devices in the United States were made...

Video Entertainment Spending Drops in the US

According to the research firm, there has also been a decline in multiplatform usage among households, as use rates on individual screens declined despite the fact that overall video viewing has held...

The Multiple OTT Service Explosion

OTT video is firmly established in the U.S. entertainment marketplace, and new research from Parks Associates only puts an exclamation point on the new reality of how Americans consume video entertain...

Tackling the Video Revolution — How AT&T, Verizon, Sprint & T-Mobile Are Investing in Video

Over-the-top video is taking over connected devices around the globe. According to research from the Parks Associates, there are more than 200 OTT services in the U.S. market alone, and there are over...

Phone:
972-490-1113
Mailing Address:
2301 West Plano Parkway, Suite 210, Plano, TX 75075
Expertise
Smart Home: Management and Safety Consumer Electronics Connected Health and Wellness Connectivity and Mobility Small-to-medium Business (SMB) MDU
Services
Research Memberships Visibility Memberships Streaming Video Tracker Smart Home and Security Tracker Broadband Market Tracker Channel Analytics
Events
CONNECTIONS™ CONNECTIONS™ Summit/CES Smart Energy Summit Connected Health Summit Future Of Video Smart Spaces
Resources
Press Releases Analyst Blog Parks in the News
Store
View Your Cart
About Us
Overview Team Contact Us Privacy Policy

Follow:

© 2023-2026 Parks Associates. All Rights Reserved. Privacy Policy

Design & Developed By Agency Partner Interactive