Roku Users less likely to subscribe to legacy Pay-TV

Tuesday, October 23rd, 2018
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Roku Users Less Likely than Other TV Streamers to Subscribe to Legacy Pay-TV

  • Legacy Pay-TV Uptake Varies by Streaming Device Brand, Roku Users of Particular Significance

PLANO, TX — It is a fact that the use of dedicated streaming devices is correlated with lower uptake of traditional pay-TV services. However, new research from The Diffusion Group finds that one brand is particularly detrimental to legacy interests: Roku.

Legacy Pay-TV Status among iSTB and Stick Users

In its ninth iteration of Benchmarking the Connected Consumer, TDG found that 35% of Roku users do not subscribe to a legacy pay-TV service, notably greater than the 27% of adult broadband users in general, most of which enjoy streaming TV.

“Given its substantial footprint and brand strength, Roku devices are becoming a favorite of those living without legacy pay-TV,” notes Michael Greeson, TDG President. “The assortment of free and fee-based video apps in the Roku portal is undoubtedly a reason why we observe these correlations. For many TV streamers, buying a Roku, and getting access to the Roku video ecosystem, is no longer just an easy way to supplement their legacy pay-TV service, but a means of replacing it.”

By 2020, TDG forecasts that streaming sticks will near 45% penetration among US broadband households, with iSTBs close behind. “Should Roku remain the dominant brand, and continue to expand its vast OTT content ecosystem,” says Greeson, “legacy pay-TV will suffer.”

This new research is featured in TDG’s annual Benchmarking the Connected Consumer, which details the ownership, placement, connectivity, and use of media-centric consumer electronic devices in the broadband home.