netflixThe percentage of households that subscribe to an online video service through their pay-TV provider has more than doubled compared to last year, according to a Parks Associates report. The report, “360 View: Access and Entertainment in U.S. Broadband Households,” suggests that a driver of the trend is the increasing number of partnerships between once rival pay-TV and OTT providers.

Last year, 10% of pay-TV households used that provider for their online video as well. This year, that figured grew to 21%. This jump is characteristic of a quickly evolving landscape. It also could mean that people are trimming their spending on traditional pay-TV services.

“The percentage of those open to cancelling pay TV or minimizing their monthly spend on pay TV is also up,” said Parks Associates’ Senior Director Brett Sappington in a press release. “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.”


Other highlights from the report seem to validate the idea that the sector is changing quickly:

  • Pay-TV subscription rates dropped from 86% in 2015 to 77% in late 2017
  • 84% of pay-TV subscribers have service from a traditional cable, satellite, or telco provider
  • Nearly 18% of pay-TV households have a subscription package from an online video service, e.g., Sling TV or a traditional provider now offering an online video bundle

It’s not hard to find examples of how fluid the relationship is between the established pay-TV ecosystem and the increasing number of streaming services. For instance, earlier this month, The Diffusion Group said that all the major television networks will offer standalone direct-to-consumer OTT services by 2022. That trend kicked off about three years ago with initiatives by HBO and CBS that have yielded each of them about 5 million subscribers.

Another example was the announcement late last month that ISP and telecom company Consolidated Communications will market DIRECTV NOW, AT&T’s OTT service. That service joins other OTT services offered by the traditional pay-TV provider, including HBO Now.

Join the Conversation

Leave a Reply

Your email address will not be published.

Don’t Miss Any of Our Content

What’s happening with broadband and why is it important? Find out by subscribing to Telecompetitor’s newsletter today.

You have Successfully Subscribed!