Tweet
15% of U.S. broadband households have antenna-only TV service, finds Parks Associates in its latest research among Broadband Households. Non Broadband Households will add more Over-The-Air TV viewers that don't have pay-tv, so the percentage among all TV households will be higher, as previously found.
Parks' new consumer research finds a steady increase of OTA-TV only service viewing coincides with drop in pay-TV subscriptions. The new cord-cutter consumer research from Parks Associates shows the percentage of U.S. broadband households that use only antennas to receive TV has steadily increased since 2013 to reach 15%.
The report '360 View: Entertainment Services in U.S. Broadband Households' reveals this increase coincides with a drop in pay-TV subscriptions and an increase in Internet-only video subscriptions.
"Pay-TV subscriptions have dropped each year since 2014, falling to 81% of U.S. broadband households in Q3 2016," said Brett Sappington, Senior Director of Research, Parks Associates. "Several factors have played a part in this decline, including growth in the OTT video market, increasing costs for pay-TV services, and consumer awareness of available online alternatives".
Parks Associates notes declining pay-TV satisfaction in each of the last three years. Only one-third of pay-TV subscribers are very satisfied with their pay-TV service. According to Parks Associates' OTT Video Market Tracker, 63% of U.S. broadband households subscribe to at least one OTT service and 31% of U.S. broadband households have multiple OTT service subscriptions.
"Pay-TV providers are adapting to address a fundamentally different video services market than existed three years ago. Challenges still remain for consumers in aggregating and discovering their favorite content and being able to watch on their preferred screen. Live broadcasts of high-profile events remain a challenge for online delivery, though pay TV and broadcast TV conquered live distribution long ago," Sappington said. "These challenges represent areas in which pay-TV providers, or new entrants, can still win consumer attention, viewership, and revenue."
360 View: Entertainment Services in U.S. Broadband Households examines trends in broadband and pay-TV adoption. It analyzes the impact of over-the-top (OTT) services as well as cord-cutting and cord-shaving on pay-TV services. It quantifies the growing ecosystem of connected entertainment devices in U.S. broadband households and their impact on broadband and video consumption and also assesses consumer demand for new pay-TV features. Additional research shows:
In 2016, twice as many subscribers downgraded (12%) their pay-TV service than upgraded (6%) it.
The likelihood of non-subscribers adopting pay TV has declined since 2012.
Only one-half as many Cord Nevers adopted pay TV in 2016 (2%) as in 2015 (4%).
The size of the Cord Never segment is slowly increasing.
"With the continued decline of traditional pay-TV subscriptions, 2017 will be characterized by the rise of online pay-TV services," Sappington said. "While traditional pay TV provides superior viewing quality, OTT video commonly excels in discovery, portability, and personalized user experiences. Consumers care less about the network used to deliver the content than they do about access to the content, ease of use, and convenience."
Dutch market researcher Telecompaper.nl, said today it's consumer panel research shows less people are willing to take a paid subscription to an paid over-the-top video service, most notably Netflix. With a decline in most notably Cable-TV services, this signals a saturation of the premium over-the-top market.
Netflix is showing a drop in the number of customers wanting to take a paid subscription after a free trial.
"According to figures from the Telecompaper Consumer Panel. Of those with a free trial in Q3 2016, 39 percent said they plan to take a paid subscription in the next six months, while 41 percent said they would not continue with the paid service. A much smaller percentage said in Q3 2015 that they would not take subscription, at 30 percent. The share willing to pay after a free trial was the same a year earlier, at 39 percent".
Netflix still remains the dominant service in the country, having the best conversion rate of all services.
"Nearly three-quarters of HBO subscribers* on a free trial said they would not take a paid subscription, 72 percent using Ziggo's MyPrime said they did not want to pay for the service, and almost 60 percent of Film1 free subscribers did not want to switch to a paid plan. Fox Sports Eredivisie did better, with only 39 percent saying they wouldn't take a subscription after the free trial and 41 percent saying they would consider paying", according Telecompaper.
*HBO stopped its services in Holland, Cable op Ziggo has taken on some of its programming including it in its MyPrime service. HBO programming being unavailable via other operators since January first of this year.
Parks' new consumer research finds a steady increase of OTA-TV only service viewing coincides with drop in pay-TV subscriptions. The new cord-cutter consumer research from Parks Associates shows the percentage of U.S. broadband households that use only antennas to receive TV has steadily increased since 2013 to reach 15%.
The report '360 View: Entertainment Services in U.S. Broadband Households' reveals this increase coincides with a drop in pay-TV subscriptions and an increase in Internet-only video subscriptions.
"Pay-TV subscriptions have dropped each year since 2014, falling to 81% of U.S. broadband households in Q3 2016," said Brett Sappington, Senior Director of Research, Parks Associates. "Several factors have played a part in this decline, including growth in the OTT video market, increasing costs for pay-TV services, and consumer awareness of available online alternatives".
Parks Associates notes declining pay-TV satisfaction in each of the last three years. Only one-third of pay-TV subscribers are very satisfied with their pay-TV service. According to Parks Associates' OTT Video Market Tracker, 63% of U.S. broadband households subscribe to at least one OTT service and 31% of U.S. broadband households have multiple OTT service subscriptions.
"Pay-TV providers are adapting to address a fundamentally different video services market than existed three years ago. Challenges still remain for consumers in aggregating and discovering their favorite content and being able to watch on their preferred screen. Live broadcasts of high-profile events remain a challenge for online delivery, though pay TV and broadcast TV conquered live distribution long ago," Sappington said. "These challenges represent areas in which pay-TV providers, or new entrants, can still win consumer attention, viewership, and revenue."
360 View: Entertainment Services in U.S. Broadband Households examines trends in broadband and pay-TV adoption. It analyzes the impact of over-the-top (OTT) services as well as cord-cutting and cord-shaving on pay-TV services. It quantifies the growing ecosystem of connected entertainment devices in U.S. broadband households and their impact on broadband and video consumption and also assesses consumer demand for new pay-TV features. Additional research shows:
In 2016, twice as many subscribers downgraded (12%) their pay-TV service than upgraded (6%) it.
The likelihood of non-subscribers adopting pay TV has declined since 2012.
Only one-half as many Cord Nevers adopted pay TV in 2016 (2%) as in 2015 (4%).
The size of the Cord Never segment is slowly increasing.
"With the continued decline of traditional pay-TV subscriptions, 2017 will be characterized by the rise of online pay-TV services," Sappington said. "While traditional pay TV provides superior viewing quality, OTT video commonly excels in discovery, portability, and personalized user experiences. Consumers care less about the network used to deliver the content than they do about access to the content, ease of use, and convenience."
Dutch market researcher Telecompaper.nl, said today it's consumer panel research shows less people are willing to take a paid subscription to an paid over-the-top video service, most notably Netflix. With a decline in most notably Cable-TV services, this signals a saturation of the premium over-the-top market.
Netflix is showing a drop in the number of customers wanting to take a paid subscription after a free trial.
"According to figures from the Telecompaper Consumer Panel. Of those with a free trial in Q3 2016, 39 percent said they plan to take a paid subscription in the next six months, while 41 percent said they would not continue with the paid service. A much smaller percentage said in Q3 2015 that they would not take subscription, at 30 percent. The share willing to pay after a free trial was the same a year earlier, at 39 percent".
Netflix still remains the dominant service in the country, having the best conversion rate of all services.
"Nearly three-quarters of HBO subscribers* on a free trial said they would not take a paid subscription, 72 percent using Ziggo's MyPrime said they did not want to pay for the service, and almost 60 percent of Film1 free subscribers did not want to switch to a paid plan. Fox Sports Eredivisie did better, with only 39 percent saying they wouldn't take a subscription after the free trial and 41 percent saying they would consider paying", according Telecompaper.
*HBO stopped its services in Holland, Cable op Ziggo has taken on some of its programming including it in its MyPrime service. HBO programming being unavailable via other operators since January first of this year.