Parks Research Finds 21% of U.S. Pay-TV Subscribers Get Online Video Service Through Pay-TV Provider

About a fifth (21%) of U.S. pay-TV subscribers say they subscribe to an online video service through their pay-TV provider, up from 10% a year ago, according to new research from Parks Associates.

The research firm attributes this jump to the increasing number of partnerships between pay-TV and OTT providers, with operators such as Comcast adding support for Netflix in their set-top boxes.

Parks Associates will address the changing dynamics of the pay-TV market at a pre-show research workshop, Survivor’s Guide to the New Video World, May 14 in Denver at The Pay TV Show.

The Pay TV Show, hosted by FierceMarkets, will address innovative technologies, strategies, and business models that telecom, tech, and media companies are using to compete in this disrupted marketplace. Sponsored by Espial, Survivor’s Guide to the New Video World highlights the latest consumer research and explores trends defining success in the new landscape for video services.

“The number of ‘Cord Never’ households (which have never had pay-TV service) is increasing slowly, but those who have sampled pay TV are testing new alternatives,” said Brett Sappinton, senior director, Parks Associates, in a statement. “The percentage of those open to cancelling pay TV or minimizing their monthly spend on pay TV is also up. This ongoing shift is affecting all aspects of service design, promotion, packaging, and pricing. As a result, operators are having to reassess their technology and content investments as well as their partnerships and go-to-market strategy.”

Other highlights from Parks Associates’ new consumer study 360 View: Access and Entertainment in U.S. Broadband Households include:

  • Pay-TV subscription rates dropped from 86% in 2015 to 77% in late 2017.
  • 84% of pay-TV subscribers have service from a traditional cable, satellite, or telco provider.
  • Nearly 18% of pay-TV households have a subscription package from an online video service, such as Sling or a traditional provider now offering an online video bundle.

Workshop speakers include:

  • Mark Jensen, executive director, video product management and strategy, ATN International
  • Blake Sabatinelli, CEO, Newsy
  • Brett Sappington, senior director of research, Parks Associates
  • Hunter Sappington, research analyst, Parks Associates
  • Chris Thun, VP of user experience product management, TiVo
  • Clayton Wagar, VP of advanced technologies, Espial
  • Mitch Weinraub, director of product, AirTV

Workshop sessions include:

  • “Video Disrupted: The New Landscape for Video Services”
  • “Video Insight: Operating in the Age of Data Ninjas”
  • “Video Streamed: Lessons from OTT Video”
  • “Video Potential: Habits of Millennials, Cutters, and Nevers”
  • “Video Tomorrow: Innovations Fueling Future Vid

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