Consumer Analytics

Video Spending & Consumption Disparities a Challenge for Pay-TV Providers

by Parks Associates | May. 1, 2015

While the typical monthly bill for pay TV is the equivalent of a nice dinner for two on the town, the typical bill from an over-the-top provider is more like a delivery pizza on special. Such a big price difference is fine, so long as people perceive an equally big difference in quality.

Data suggests that for many people, this is in fact the case. A video Purist for example (defined by Parks Associates' video segmentation) will spend 88% of their money on pay-TV services and 88% of their time watching pay-TV services. However, for other segments, spending and consumption levels are far out of alignment. Multiscreeners, for example, spend 66% of their money on pay-TV services, but 60% of their time watching OTT services.

Such an imbalance presents a challenge to pay-TV providers because it gives consumers an obvious incentive to rebalance their video portfolio and shift spending from pay-TV services to over-the-top sources. Put plainly, these are the segments most in danger of cord-cutting and shaving—food for thought for service providers when they are developing new service packages and aiming to hold onto their existing subscribers.


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