Sunday, January 25, 2015

Netflix accelerates global expansion

Research from Parks Associates found that 17% of households with broadband in the United States said they would subscribe to an over-the-top service from HBO. Over 90% of them are currently pay-television subscribers and around a half said they would cancel their pay-television services as a result.

In all probability they will not, based on evidence to date. Over 50% of U.S. broadband households subscribe to an OTT video service, but Parks Associates analysts say this finding does not mean consumers are ready to abandon their televisions.

“This shift to the use of OTT on the TV screen will impact the entire ecosystem, including pay-TV providers, broadcasters, cable networks, and advertisers,” said Brett Sappington, the director of research for Parks Associates. “Everyone will need to adjust to a new way of doing business.”

“Television is not dying, but it is evolving,” added Glenn Hower, a research analyst with the firm. “The age of appointment television is coming to a close, and programming will need to adapt to an on-demand environment.”

From the article "Netflix accelerates global expansion."

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