6% of U.S. broadband households highly likely to subscribe to online pay-TV in the next 12 months

Six percent of broadband households are highly likely to subscribe to an online pay-TV service within the next 12 months

New research from Parks Associates shows that 6% of U.S. broadband households are highly likely to subscribe to an online pay-TV service within the next 12 months, which would more than double the number subscribing today.

“In 2017, 14% of non-pay-TV households were planning to subscribe to a service in the next 12 months, a notable increase from 2015 and 2016,” said Brett Sappington, Senior Director of Research, Parks Associates. “Over 60% of these households are planning to subscribe to an online pay-TV service, either standalone or as part of a service bundle, so consumers are showing a willingness to test alternate pay-TV offerings.”

“Currently, 78% of broadband households subscribe to a pay-TV service, and 5% of pay-TV households subscribe to an online pay-TV service. These solutions include services such as Sling TV, DIRECTV Now, PlayStation Vue, YouTube TV, Hulu with Live TV, or FuboTV,” Sappington said. “While OTT gives subscribers the opportunity to pick and choose single services, it is easier for them to manage a single bundle. Desire for this convenience will continue to drive interest in online pay-TV services, provided they hit the right price point and deliver the desired content channels.”

Additional Parks Associates data:

• Use of an OTT service in a household correlates positively to high intent to upgrade broadband service.
• Approximately 33% of Cord Cutters would have stayed with their service provider if offered a Netflix-style service bundled with broadcast TV channels.
• 5% of U.S. broadband households have never subscribed to a pay-TV service.
• 8% of U.S. broadband households have recently downgraded their pay-TV service and supplement viewing with video on an internet-connected device.