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

The Glory Days of Sharing Passwords to Stream Free TV May Soon End

According to Bloomberg, industry research firm Parks Associates found that one-third of internet users stream cable TV shows without paying for access, which, the firm estimates, costs cable companies...

Doorbell live-cams fight back against porch pirates filching packages

For years, home security has been relatively expensive, with homeowners paying an average of $44 per month for a professionally installed and monitored system. About 22 percent of U.S. homeowners subs...

Doorbell live-cams fight back against porch pirates filching packages

For years, home security has been relatively expensive, with homeowners paying an average of $44 per month for a professionally installed and monitored system. About 22 percent of U.S. homeowners subs...

Nest, now a Google subsidiary, starts selling video doorbell

Nest’s doorbell, called Nest Hello, marks its first entry into the $334 million video doorbell market, according to 2017 data from research firm Parks Associates. Last month, Amazon announced it had p...

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