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Research: 16% US Internet homes have cancelled pay-TV and returned

Parks Associates’ research The New Live TV Model: Skinny Bundles, Sports, News finds that pay-TV churn does not always represent the permanent loss of a subscriber. The firm’s study of 8,000 US internet households shows 16 per cent of US internet households have cancelled a pay-TV service in the past and later returned, demonstrating new opportunities for providers to win back former subscribers

“Consumers are managing these larger streaming portfolios without materially increasing their overall entertainment spending, creating intense competition for wallet share,” commented Michael Goodman, Director, Entertainment Research, Parks Associates. “Consumers still value live sports, news, and events, but they increasingly reject the traditional large-channel bundle.”

Parks Associates research shows that among returning pay-TV households, 40 per cent returned within six months, and 29% returned after more than a year. Live sports are particularly important in bringing subscribers back.

“The research also shows that the longer consumers remain away from pay-TV, the more likely they are to choose a vMVPD when they return,” Goodman said. “This behavior is changing the competitive environment, and providers like YouTube TV, DirecTV Stream, and Charter (Spectrum) are responding with different approaches to packaging.”

From the Advanced Television article, "Research: 16% US Internet homes have cancelled pay-TV and returned"

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