21% of U.S. pay TV households buy SVOD through their pay TV provider

Parks Associates: 21% of Pay-TV Households Subscribe to an Online Video Service Through Their Pay-TV Provider

DALLAS – New research from Parks Associates shows that 21% of U.S. pay-TV subscribers say they subscribe to an online video service through their pay-TV provider, up from 10% a year ago. 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. Parks Associates will address the changing dynamics of the pay-TV market at a pre-show research workshop, Survivor’s Guide to the New Video World, May 14 in Denver, at The Pay TV Show.

The Pay TV Show, hosted by FierceMarkets, will address innovative technologies, strategies, and business models that telecom, tech, and media companies are using to compete in this disrupted marketplace. Sponsored by Espial, Survivor’s Guide to the New Video World highlights the latest consumer research and explores trends defining success in the new landscape for video services.

“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, Sr. 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 U.S. 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.