New research from Parks Associates suggests that the hype surrounding the threat of Over-the-Top (OTT or Internet delivered video) video encouraging ‘cord cutting’ of subscription video services like cable TV, IPTV, and DBS are just that – hype. According to their “All Eyes on Video” research report, only six million households, or 8% of all households, are seriously considering choosing OTT video services over traditional pay TV.
Study results “do not show an appreciable likelihood of subscriber churn in favor of online video services.” Parks Associates suggests the bigger threat to existing video providers continues to be “their traditional competitors.”
Of particular note regarding customers who will choose OTT video, study author John Barrett, director, research, Parks Associates suggests, “Nobody is going to rely on online video alone — households likely to cancel their TV services are going to use a mixture of online video, free-to-air broadcasts, and DVDs, including rental services such as Netflix and redbox.”
Of course, I’m sure you can find studies that will report opposite findings, suggesting OTT video is a growing threat. As is the case with all of these trends – the ultimate deciders have not been heard from yet – customers. It will take some time before we know for sure what the OTT trend really means. Until then, pick your poison.