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.