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7 Percent of American Households Have OTT, But Not Pay TV

According to research from Park Associates, 7 percent of American households subscribe to broadband and OTT (over-the-top) programming, but don't buy traditional pay TV services. The OTT trend means that there is a growing number of over-the-top subscription and pay TV may seem to be in a declining business trend.<br><br>Learn about OTT monetization solutions: https://www.vindicia.com/solutions/ott-monetization-solutions/

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7 Percent of American Households Have OTT, But Not Pay TV

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  1. 7 Percent of American Households Have OTT, But Not Pay TV © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential. 1

  2. 7 Percent of American Households Have OTT, But Not Pay TV Americans enjoy the freedom of choosing the programming they want to watch, so a growing number are strictly subscribing to OTT services. In fact, according to recent research from Park Associates, 7 percent of American households subscribe to broadband and OTT programming, but don't buy traditional pay TV services. Brett Sappington, director of research of Parks Associates, said the OTT services marketplace keeps changing at a fast pace. "A variety of new players are entering the market, and operators including DISH Networks, Rogers Communication, Bell Canada, and Sky are responding with OTT video services of their own. How the industry responds to this change will ultimately affect the fundamental structure of the video industry for years to come," Sappington explained. The research firm predicts subscriptions to OTT services will increase to more than $19 billion in 2019. Sappington added that dedicated video customers are still subscribing to pay TV services if their budgets allow it. Companies involved in the video ecosystem, however, are enthusiastic about reaching customers who no longer think pay TV is worth the money. "OTT services will increase to more than $19 billion in 2019." 2 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

  3. The report also pointed out that the cable industry's TV Everywhere approach isn't doing that well . Although the initiative allows subscribers to view programming on computers and tablets, 82 percent of Americans still aren't aware of what TV Everywhere is. Is pay TV on its way out? With so many people watching their favorite programming through the Internet, it can make you wonder if pay TV providers are in danger of becoming extinct. According to a 2014 GfK research report, 19 percent of American TV viewers have at least one streaming device in their home. More than one-third of these people admitted they use the devices to stream content instead of watching their favorite programming on traditional TV. "Digital media players take a primary role in users' viewing behavior, ranking as the first or second destination – ahead of live TV or DVRs – when deciding what to watch in primetime," David Tice, senior vie president at GfK said. "However, a positive note for linear networks is that digital media player users don't perceive their use as cannibalizing their regular TV viewing." 3 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

  4. About the Author: Bryta Schulz Bryta joined Vindicia in 2013 and serves as Senior Vice President of Marketing. She is responsible for building brand awareness, creating go-to-market strategy and promotion, and driving growth. With over a decade of executive level marketing, product management and PR experience, Bryta has led marketing teams in enterprise technology and SaaS companies. Her experience includes heading product marketing at GoGrid, PGP, RSA and Symantec and business development and product management positions at Xcert, Thales, and Persistence Software. Bryta holds a MA in Translation from the Johannes Gutenberg University Mainz and an MBA from the University of Reutlingen. Visit our Blog for more information. 4 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

  5. Thank You Like us on Facebook facebook.com/vindicia Follow us on Twitter @Vindicia Connect with us on Linkedin linkedin.com/company/vindicia © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential. 5

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