According to the Diffusion Group, those likely to downgrade their pay TV service in the next six months are more dependent than others on over-the-top (OTT) streaming services like Netflix (NASDAQ:NFLX) and Hulu.
Among those moderately or highly likely to downgrade their pay TV service in the next six months, 29% of their TV time is spent watching streaming video sources, significantly more than those neutral or unlikely to downgrade. Use of OTT video increases in line with the proclivity to downgrade.
"The variety, reach, and personalization of OTT TV services continues to grow," said Michael Greeson, TDG director of research. "While not yet a mainstream replacement threat, OTT TV is most certainly a key factor in downgrade considerations."
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EDITORIALSTEPHEN HARDY
MATT VINCENT
KRISTINE COLLINS
JEAN LAUTER
STEPHEN HARDY
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