Study: OTT more Friend than Foe

According to Horowitz Research, over-the-top (OTT) streaming VOD services (such as Netflix, Hulu, or Amazon Prime) remain a complement to, not a replacement for, traditional multichannel pay TV. The research house says 40% of Internet users have pay TV and a subscription OTT service, 42% have pay TV only, 11% have an OTT service only, and 7% have neither. Among OTT users, 78% are also pay TV subscribers. But recent OTT developments from traditional pay TV distributors - DISH's Sling TV and DirecTV's Yaveo - could start changing the game.

"For many, streaming video has become an integral part of the viewing lifestyle. The idea of an Internet TV service, at a lower price point and with more customizable options, is an attractive prospect," wrote Adriana Waterston, Horowitz's SVP of insights and strategy.

The study indicates that among Internet users overall, 51% have access to an OTT service, rising to 75% among Millennials. Millennials are three times as likely to have an OTT service and no multichannel (21% among Millennials vs. 7% among 35+) and 48% report spending more than 50% of their viewing time streaming.

Some 55% of Millennials who are multichannel subscribers say that if the price were right, they would subscribe to an Internet TV service instead of their current cable or satellite service, compared to 43% of 35+.