Parks Associates Research Shows 6% of U.S. Broadband Households Likely to Subscribe to Online Pay-TV Service in Next Year

New research from Parks Associates shows that 6% of U.S. broadband households are highly likely to subscribe to an online pay-TV service within the next 12 months, which would more than double the number subscribing today.

“In 2017, 14% of non-pay-TV households were planning to subscribe to a service in the next 12 months, a notable increase from 2015 and 2016,” said Brett Sappinton, senior director of research, Parks Associates, in a statement. “Over 60% of these households are planning to subscribe to an online pay-TV service, either standalone or as part of a service bundle, so consumers are showing a willingness to test alternate pay-TV offerings.”

“Currently, 78% of broadband households subscribe to a pay-TV service, and 5% of pay-TV households subscribe to an online pay-TV service. These solutions include services such as Sling TV, DIRECTV Now, PlayStation Vue, YouTube TV, Hulu with Live TV, or FuboTV,” Sappington said in a statement. “While OTT gives subscribers the opportunity to pick and choose single services, it is easier for them to manage a single bundle. Desire for this convenience will continue to drive interest in online pay-TV services, provided they hit the right price point and deliver the desired content channels.”

Additional Parks Associates findings include:

  • Use of an OTT service in a household correlates positively to high intent to upgrade broadband service.
  • Approximately 33% of cord cutters would have stayed with their service provider if offered a Netflix-style service bundled with broadcast TV channels.
  • 5% of U.S. broadband households have never subscribed to a pay-TV service.
  • 8% of U.S. broadband households have recently downgraded their pay-TV service and supplement viewing with video on an internet-connected device.

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