21% of US pay-TV subscribers say they subscribe to an online video service through their pay-TV provider, up from 10% a year ago, according to Parks Associates.
The research firm attributes this jump to the increasing number of partnerships between pay-TV and OTT providers, with operators such as Comcast adding support for Netflix 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, senior director, Parks Associates.
“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 highlights from Parks Associates’ new consumer study 360 View: Access and Entertainment in US Broadband Households include:
– 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.
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