With the pay-TV ecosystem continuing to lose subscribers to over-the-top video, a new reports suggests upwards of 80% of consumers committed to broadcast TV also stream video.
The report from Telaria, which markets software to manage video advertising, and Adobe Advertising Cloud illustrates the experiences, behaviors, and television usage among a spectrum of TV consumer segments as cord cutting continues to trend upwards and TV advertising models shift to accommodate viewer distribution channels.
Based on an online survey with 750 respondents representing pay-TV subs, over-the-top streamers and VOD consumers,the findings suggest brands that advertise on TV should also invest in connected TV as streaming digital video grows in popularity – including among pay TV customers. Advertisers will be able to access long-form, broadcast-quality programming that is increasingly available through OTT sources.
Indeed, about 42% of pay-TV subs think cable is necessary to view live sports, news and events – a key factor in their decision to keep the distribution channel.
When faced with the question of how to access TV content if they no longer had cable, 21% of pay-TV subs respondents said they had no idea where to turn. Only 50% of pay-TV subs are satisfied with the price they pay for content relative to the service they get, compared to 77% satisfaction among OTT subs. Another 55% of pay-TV subs said they found cord-cutting options confusing.
“Streaming services are providing premium video content at attractive price points and [pay-TV subs] are taking notice,” Karen Ring, head of research at Telaria, said in a statement. “Once [connected TV] services address the consumer confusion around streaming options and better communicate the live content available on their platforms, consumers will have a higher comfort level streaming. As viewers continue to increase time spent with CTV and ad supply increases, marketers need to learn how to create an effective advertising strategy that spans all types of TV.”