Parks Associates: 6% of Broadband Households are Highly Likely to Subscribe to an Online Pay-TV Service Within the Next 12 Months
Parks Associates addresses competition and changing consumer habits at The Pay TV Show in Denver
DALLAS(14 May 2018)
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. Parks Associates hosts the pre-show research workshop Survivor's Guide to the New Video World, sponsored by Espial, today at The Pay TV Show in Denver, Colorado.
"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."
Survivor's Guide to the New Video World examines new video service and OTT innovations and their impact on consumer behaviors and the marketplace for pay TV, online video services, and the content industry.
"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."
The workshop features five workshop sessions:
- Video Disrupted: The New Landscape for Video Services
- Video Insight: Operating in the Age of Data Ninjas
- Video Streamed: Lessons from OTT Video
- Video Potential: Habits of Millennials, Cutters, and Nevers
- Video Tomorrow: Innovations Fueling Future Video Services
The Pay TV Show, hosted by FierceMarkets, gives attendees an opportunity to explore the latest advances and challenges in the pay-TV industry through keynotes, panels, and general sessions.
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.
For information about Parks Associates, visit www.parksassociates.com. To schedule an interview with an analyst, contact Julia Homier at julia.homier@parksassociates.com, 972-996-0214.
About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.