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Pay TV Meets OTT: 1 in 5 Get Streaming Service Through Pay TV

It's the embodiment of "If you can't beat 'em, join 'em": Researcher Parks Associates released data today showing that 21 percent of pay TV subscribers in the U.S. also subscribe to a streaming service through their pay TV provider. If that doesn't sound like many, consider that only 10 percent did so one year ago. This shows cable and satellite companies see the inevitability of over-the-top services, and have decided it makes more sense to add streaming services to their platforms rather than fighting them. Consumers appreciate unified billing, so this move is a win for subscribers, as well, who can pay one monthly bill for multiple services.

Not that all the news is good for pay TV, however: Parks revealed that 77 percent of U.S. households now have a pay TV subscription, down from 86 percent in 2015. There's a feeling in the industry that this number is close to reaching its bottom, so perhaps a plateau is coming.

While some households get their OTT services from a pay TV provider, the reverse is also true: Parks says almost 18 percent of homes with a cable channels get them through an online video service, such as Sling TV, DirecTV Now, or Hulu With Live TV.

From the article "Pay TV Meets OTT: 1 in 5 Get Streaming Service Through Pay TV" by Troy Dreier.

Previously In The News

More than 50% US broadband households subscribe to both pay-TV, OTT video service

New consumer research from Parks Associates shows that 53 percent of US broadband households subscribe to both a pay-TV service and at least one OTT video service. According to the ‘OTT Video & TV...

Parks: Netflix retains OTT top-spot in the US

“Importantly, all of these services have increased their subscriber base over the past year,” said Parks Associates. “The top five OTT services have stayed consistent, primarily through maintaining or...

Sling TV: How Many Subscribers Does It Have?

Parks Associates thinks so. The research group this week issued a study showing that Sling has surpassed the one million subscriber mark, becoming the nation's sixth leading subscription streaming ser...

OTT Churn Edges Up In US

About 20% of US broadband homes had cancelled at least one OTT service in the last 12 months at the end of 2015, according to data from Parks Associates. Netflix has the lowest churn among US OTT s...

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