Providing market intelligence for more than 35 years

Rapid TV News

Half of pay-TV subs with HBO OTT would cut the cord

HBO's prospects for picking up a new audience with a standalone streaming service are looking pretty good: about 17% of US broadband households are likely to subscribe to an over-the-top (OTT) video service from the premium cable net.

New Parks Associates video research finds among these likely subscribers, 91% are currently pay-TV subscribers, and roughly one-half would cancel their pay-tv service after subscribing to the HBO over-the-top service. Thus, an HBO OTT offering will create competitive challenges for all ecosystem players, including Netflix, Amazon, and pay-TV providers.

"HBO picked a good time to announce its standalone HBO Go OTT service in the US," said Glenn Hower, research analyst at Parks Associates. "The percentage of subscribers interested in OTT video services is trending upward, and more industry players are planning to launch their own OTT services."

For instance, DISH announced at CES 2015 that its OTT service, Sling TV, will include live TV such as CNN, ESPN, ESPN2, TNT, and TBS.

"Sports programming could be a major addition for standalone OTT services as sports is one of the primary reasons consumers elect to keep pay-TV services," Hower said.

From the article "Half of pay-TV subs with HBO OTT would cut the cord" by Michelle Clancy.

Previously In The News

Seagate launches personalised Roku channel

"Streaming of entertainment content continues to grow – two-thirds of US broadband households currently connect a CE device to their TV sets – meaning that consumers have a wide variety of viewing...

Netflix Reports Lowest Churn As Fifth Of US Broadband Households Cancel OTT In 2015

According to research from Parks Associates, a fifth of broadband US households have cancelled at least one over-the-top (OTT) video service in the past 12 months, up two percentage points from a y...

TV users gravitate towards dedicated apps

In a move that could have profound ramifications for programming, more research has confirmed the trend that TV users are increasingly turning to dedicated apps to access TV channels. According...

Pain is in Spain as UK, Germany lead in Euro pay-TV

Pay-TV adoption in Germany and the UK has reached levels of penetration nearly double that found in other key markets, in particular Spain, according to data from Parks Associates. Revealing it...