Parks Points

More Than Two-thirds of Broadband Households Now Subscribe to an Online Video Service

by Keshav Jaiswal | Aug. 19, 2019
Two-thirds of Broadband Households Now Subscribe to an Online Video Service 
Growth of OTT adoption was experienced throughout 2018 with a seasonal spike in the second half of the year. Penetration of almost three-quarters of broadband households suggests the market is nearing a level of saturation. Further growth will come from expanding services within a household. Major players like Disney entering the market could spur additional penetration growth but a bulk of its adoption will likely come from current subscribers to existing services.
Meanwhile, pay-TV subscriptions continue to decline as consumers migrate to alternative services. This decline of pay-TV penetration in broadband households has been constant since 2014, with only a marginal increase experienced in 2017. Continued increase in pay-TV prices, greater selection and availability of online video service alternatives, and proliferation of connected home entertainment devices all contribute to the decline.
Although both OTT and pay-TV have had a contrasting adoption curve in recent years, financial incentives are primary drivers for new subscriptions. The buying journeys for both OTT and pay-TV subscribers are different as an average OTT subscriber experiences consumer fatigue and their decision is driven by specific content and genre of content offered while pay-TV subscribers experience the problem of undifferentiated options due to similar services being offered by multiple providers. These Subscribers end up making the purchase decision based on promotional offers.  
For more information on this topic, see Parks Associates’. 360 Deep Dive: The Buyers Journey: Pay TV vs. OTT. This study identifies the current adoption rates of pay-TV and OTT services and the reasons driving consumers to buy, switch and cancel these services. The report examines consumer attitudes and what criteria they use when shopping and subscribing to a pay-TV or OTT service. The report also identifies what services the consumers are switching and cancelling. 

Keshav Jaiswal

Keshav Jaiswal

Consumer Insights Analyst II

Keshav studies market trends and consumer behaviors related to the use of smart home and entertainment technologies. Keshav’s work with the Consumer Analytics team includes primary and secondary research, where he focuses on finding data-driven solutions from syndicated and custom survey data.

Keshav Jaiswal graduated from University of Texas at Dallas with a Master of Science degree in Business Analytics specializing in Marketing and Research. He also holds a bachelor’s degree in Computer Science and Engineering.

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