Parks Points

Pay-TV decline shows signs of plateauing

by Chris O’Dell | Feb. 1, 2019

The percentage of broadband households with a pay-TV service continues to decline, from 87% in 2011 to 80% in 2018. Those declines have largely been due to increasing consumer choice from OTT services, as 70% of U.S. broadband households now subscribe to at least one OTT service. However, MVPDs may rejoice that pay-TV decline is showing early signs of plateauing.

Households without pay-TV service subscriptions increased from 13% in Q3 2012 to 23% in Q3 2017. That number dipped to 20% in Q3 2018, showing preliminary signs that 80% adoption may be a plateau for a few years.

For pay-TV service providers, traditional or online, to be successful, they must fully understand consumer activity, values, and motivation related to adoption and use of their services. Service providers will need to add features and online offerings to keep pace and maximize retention.

For more information on this topic, see Parks Associates’ 360 View: Entertainment Services in the U.S. The study identifies key trends and quantifies important benchmarks in pay-TV services. The study also examines the landscape of devices in the home, including pathways for streaming content to the TV and antennas for access of over-the-air channels.

Households Without Pay TV Service Subscriptions (2011-2018) | Parks Associates

Chris O’Dell

Chris O’Dell

Research Analyst

INDUSTRY EXPERTISE: Connected home, cybersecurity, blockchain, smart home products, insurtech

Chris O’Dell is a member of the connected home team, authoring reports on the privacy and security needs in the home and tracking various smart home product markets. Chris also contributes to Parks Associates custom research work across all connected home markets.

Chris joined Parks Associates following a six-year career in journalism. Chris graduated from Harding University in Searcy, AR, in 2010 with a BA in broadcast journalism and a concentration on print journalism, where he served as the sports editor for The Bison, an award-winning student publication.

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