Pay TV ups online uptake

March 28, 2018
According to Parks Associates, 21% of U.S. pay TV subscribers surveyed say they subscribe to an online video service through their pay TV ...

According to Parks Associates, 21% of U.S. pay TV subscribers surveyed say they subscribe to an online video service through their pay TV provider, up from 10% a year ago. The research firm attributes the jump to the increasing number of partnerships between pay TV and OTT providers, with operators such as Comcast (NASDAQ:CMCSA) adding support for Netflix (NASDAQ:NFLX) in their set-top boxes.

"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 Sappington, Parks' senior director. "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 findings indicate:

  • 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, e.g., Sling or a traditional provider now offering an online video bundle.
About the Author

BTR Staff

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STEPHEN HARDY
Editorial Director and Associate Publisher
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MATT VINCENT
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KRISTINE COLLINS
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JEAN LAUTER
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