Almost three-quarters of consumers plan to stop paying for pay TV services within the next five years, claims a new report.
According to figures from Grabyo, 74% of the 13,000 respondents surveyed in the US, UK, France, Germany, Italy, Spain, Brazil, Argentina, Thailand, Japan and Australia said that they intend on cutting the cord by 2025. Of those planning on ditching pay TV, 26% cited high prices as being their primary reason for cord-cutting.
The report also claims that OTT video streaming penetration has surpassed pay TV – 55% vs 50%.
Users signing up to multiple SVOD services is a much more common trend in the US, with 35% of respondents saying they subscribe to two or more. In the UK, little more than a quarter or respondents said they subscribe to multiple services.
When asked about a top price point, 40% of Brits said that they’d spend up to £35 per month on an OTT platform while 47% of Americans said they’d pay up to US$35 per month.
While OTT is often portrayed as a millennial-focused business model, the study also found that people aged over 65 are increasingly growing savvy to the format with 63% saying that they subscribe to at least one platform.
Grabyo CEO Gareth Capon, said: “Broadcasters, rights holders and publishers need to cater to an audience that is moving away from traditional TV. Flexibility, access and price are important to consumers, which means delivering a multiplatform video strategy that reflects these needs. The transition to cloud services will support this shift, but these changes need to accelerate.”
ICYMI: Former Virgin Media MD Pat Kiely launches Dublin-based prodco digitaltveurope.com/2021/03/01/for… https://t.co/zVGoQvZvwS
01 March 2021 @ 21:00:00 UTC
ICYMI: APAC pay TV revenues to fall by US$1 billion over next five years digitaltveurope.com/2021/03/01/apa… https://t.co/DVtBERM187
01 March 2021 @ 20:00:01 UTC
ICYMI: North American OTT market to double in revenue by 2026 digitaltveurope.com/2021/03/01/nor… https://t.co/uwCF2fmpwZ
01 March 2021 @ 19:00:02 UTC
.@ManUtd brings MUTV to Africa in deal with StarTimes digitaltveurope.com/2021/03/01/man… https://t.co/G77z8gGk2j
01 March 2021 @ 18:00:02 UTC
ATSC gives Recommended Practice status to Immersion Corporation’s haptics proposal digitaltveurope.com/2021/03/01/ats… https://t.co/OtcNEq3DIy
01 March 2021 @ 17:00:02 UTC