When consumers can get a streaming video service with live channels and an on-demand library for $15 per month, their $80 per month cable or satellite service starts to look like a poor value. That's one finding from Parks Associates, which revealed video OTT and pay TV data today.
Looking at households that have changed their pay TV service in the past year, Parks finds 33 percent of those cutting the cord and 10 percent of those trimming their service see streaming options as a substitute for pay TV. Streaming is emerging as a better value for many viewers.
"The primary driver for pay TV cancellation and downgrades continues to revolve around pricing and perceived value. While some consumers consciously plan to use OTT video services to address the absence of pay TV content, most consider each offering on its own merits," says Brett Sappington, senior director of research at Parks Associates.
From the article "OTT Services Make Pay TV Look Like a Poor Value, Parks Finds" by Troy Dreier.
It also fits a wider trend. Speaking on a separate panel here, Parks Associates President and Chief Marketing Officer Elizabeth Parks cited research that the use of home Internet/mobile bundles have g...
Not everyone is so sanguine about an H2 recovery, however. “With inflation touching virtually every category, spending on consumer electronics may not be a top priority at present,” argues Sarah Lee,...
It is worth cross-checking this data with another from the Parks Associates consultancy : annual revenue from subscription to OTT sports platforms (transmission of video and audio content over the Int...
According to Parks Associates research, 31% of the US population resides in MDUs, and with new apartment construction continuing to grow, up 24.1% as of February 2023, internet service providers (ISPs...
