Netflix and OTT present ‘historic’ challenge to US pay TV

Traditional pay TV operators in the US are facing an unprecedented challenge and their growth will hinge on the success of their TV Everywhere services, according to new research.

As OTT and broadband content services win market share and the number of broadband customers in the US approaches parity with the number of pay TV subs, pressure is on the traditional cable and satellite operators to generate returns from new services, IHS Screen Digest says.

By 2016 there will be 99.9 million broadband subs in the US. At the same point there will be 100.4 million cable, DTH and IPTV pay TV subscribers.

“Based on our continuing analysis of TV Everywhere and OTT services like Netflix, it’s clear that the US pay TV industry has reached a historic juncture,” said Tom Adams, IHS director and principal analyst for US media research, ahead of a presentation at the Consumer Electronics Show. “Neither print nor audio media have been able to properly capitalise on – or even just withstand – the internet juggernaut. So, the key question for US pay-TV operators in the years ahead is: will TV Everywhere keep customers coming to them, rather than to their OTT competitors, for video entertainment?”