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

Apple's home head leaves, and new products launch, on HomeKit Insider

We also spent some time discussing a new Parks Associates study that surveyed 10,000 homes to identify the growth in smart home tech. Doorbells and locks were the fastest growing category this year, w...

Why HBO Max, Peacock Are Deadlocked in Talks With Roku and Amazon

The OTT platforms’ leverage is real. Both say they have more than 40 million active accounts (and growing). “Amazon and Roku are beginning to play hardball with a lot of these services,” says Parks As...

No, Apple's licensing of iTunes & AirPlay 2 isn't a 'strategy reversal' in any way

That claim cited research by Parks Associates, which actually showed that Apple TV's share by installed base was not drying up and blowing away as Mims portrayed, but was actually better than Google's...

How Roku Morphed From a Quirky Hardware Startup to a TV Streaming Powerhouse

Roku has kept its eye on simplicity ever since that first player while also making products that often are far more affordable than those of its competition. “People underappreciate how important pric...

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