October 16, 2018
The pay-TV ecosystem under siege by over-the-top video and online TV platforms, saw 34% of U.S. broadband households change their service between Q1 2017 and Q1 2018, according to new data from Parks Associates.
Fifteen percent of pay-TV subs, slightly less than half of all who made changes in the past year, downgraded to a less expensive TV service.
“OTT video subscriptions are on the rise, reaching 64% of U.S. broadband households, as pay-TV subscriptions decline,” SVP Elizabeth Parks said in a statement.
Parks said pay-TV operators are looking for that “magic” combination of service types, content, and pricing in order to secure and maintain subscribers.
Indeed, Parks recently reported that 91% of households with OTT video, subscribe to Hulu, Amazon Prime Video or Netflix.
“Our research helps illuminate consumer interest and expectations as well as enhance the understanding of disruptive business models and technologies in order to craft optimal video service strategies,” Parks said.