Over one in five US pay TV subscribers now take an online video service through their pay TV provider, up from 10% a year ago, according to research from Parks Associates.
According to the research group’s report 360 View: Access and Entertainment in US Broadband Households, some 21% of US pay TV customers now take an online TV service from their provider.
Overall, some 18% of US pay TV households take a subscription package from an online video service such as Sling or a traditional provider now offering an online video bundle.
Parks Associates calculated that pay TV subscription rates in the US dropped from 86% in 2015 to 77% late last year, with 84% of those pay TV subscribers taking a service from a traditional cable, satellite or telecom provider.
“The number of ‘cord never’ households – which have never had pay-TV service – is increasing slowly, but those who have sampled pay TV are testing new alternatives,” said Brett Sappington, senior director, Parks Associates.
“The percentage of those open to cancelling pay TV or minimizing their monthly spend on pay TV is also up. This ongoing shift is affecting all aspects of service design, promotion, packaging, and pricing. As a result, operators are having to reassess their technology and content investments as well as their partnerships and go-to-market strategy.”