November 15, 2018
A new whitepaper from Parks Associates reports live broadcast TV represented 60% of video consumption on televisions in early 2012 but only 44% at the end of 2017.
The firm noted that live viewing continues to decline, with survey data from the third quarter of 2018 showing live broadcast video now accounts for 42% of all video consumption on a TV.
The report “Video’s Critical Path: Success at Web Speed,” sponsored by MediaKind, documents the overall decline of pay-TV subscribers in North America and the shift to OTT video services, which consumers are embracing in large numbers.
“While OTT SVOD has significantly changed viewing patterns among consumers, live video is far from dead,” said Brett Sappington, senior director of research for Parks Associates. “We still see massive spikes in viewership for live events. However, an increasing amount of live viewership is on connected devices. Change does not come easily, but the scale of disruption in the video industry requires traditional pay-TV providers to address their business and service strategies in a new way. New strategies include delivering video to mobile phones and transitioning live video to online sources.”
Additional Parks Associates findings include:
- The overall rate of OTT video service cancellation is steady at 18%;
- More than 85% of U.S. millennials subscribe to at least one OTT video service; and
- By 2022, more than 265 million households worldwide will have more than 400 million OTT video service subscriptions.