41% of customers surveyed said they’ll cut, cancel pay TV in next 12 months

A new report says that more than four-in-10 pay-TV subscribers say they’ll either cut the cord or shave their pay-TV bill by reducing services in the next year, a number that would be downright apocalyptic for the industry.

A report in MultiChannelNews said research firms FocusVision and Zanthus recently conducted a survey of some 1,000 consumers that found 41% planned to either reduce their spend on pay-TV services or to cut the cord completely. By comparison, the firm said, just 16% of OTT subscribers said they’d cut or shave the cord.

Satisfaction with OTT services is significantly higher than with pay-TV services (59% vs. 27%) and OTT users were more likely to recommend their service than were pay-TV subscribers (62% vs. 43%).

As has been the norm, Millennials are the biggest users of streaming services, with 84% saying they use an SVOD service.

But, here, too, there’s some significant change going on.

The gap between users and non-users based on age is dwindling.

Nearly three-quarters (74%) of Gen X respondents said they streamed and 60% of young Baby Boomers said they subscribe to an SVOD service.

A number than has a lot more dollar signs attached to it, obviously, is how much time is actually spent watching pay-TV vs. how much time is spent streaming. The numbers from the study should  prove to be more worrisome to pay-TV service providers (and an eye opener to brands):

  • Time spent weekly watching pay TV averaged 18 hours.
  • Time spent weekly watching an OTT service averaged 11 hours.

Stay tuned.

Jim O’Neill is Editor of Videomind and Principal Analyst at Brightcove. You can follow him on Twitter @JimONeillMedia and on LinkedIn