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Broadband & OTT Improve, Pay TV Slumps As Per Pew Study 08 January 2016

The “Home Broadband 2015” report revealed that 15% of US adults abandoned cable and satellite TV services, becoming cord-cutters while 9% of US adults admitted to having never subscribed to a cable or satellite service. That means that in 2015 nearly one-quarter (24%) of all American adults don’t subscribe to pay TV services. That is a large piece of the pie no matter how you cut it and just as expected, OTT video services (and the lower costs that go along with them) are contributing to the amount of pie that is missing from pay TV services. Of the respondents that don’t have pay TV, 71% cited the high cost of cable and satellite as a reason for not subscribing and 64% cited the ability to access content online or via antenna as a reason for skipping on pay TV. Streaming services like Netflix, Hulu and Amazon Prime Instant Video are available for relatively low costs and they provide the option for consumers to watch the content they want when they want to on the devices of their choosing.

The same can’t be said of pay TV, although it is trying. TV Everywhere options are indeed everywhere now, service providers and TV networks are giving viewers the option to view live TV online although the linear aspect of traditional pay TV still exists for some – not to mention subscribing to multiple TVE options makes for a less-than-friendly user experience for the consumer who has to jump from one option to the next while browsing for something to watch.

Source : Rethink Research

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