Pay-TV providers’ OTT efforts paying off | Media Analysis | Business
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About a fifth (21%) of US respondents in a recent survey said they subscribe to an online video service through their pay-TV provider, up from just 10% a year ago.

sling 29 march 2018Research from Parks Associates attributes this jump to the increasing number of partnerships between pay-TV and over-the-top (OTT) providers, with operators such as Comcast adding support for Netflix in their set-top boxes.

"The number of 'cord-never' households (which have never had pay-TV service) is increasing slowly, but those who have sampled pay-TV are testing new alternatives," said Brett Sappington, senior director, Parks Associates.

The percentage of those open to cancelling pay-TV or minimising their monthly spend on pay TV is also up.

“This ongoing shift is affecting all aspects of service design, promotion, packaging and pricing,” Sappington added. “As a result, operators are having to reassess their technology and content investments as well as their partnerships and go-to-market strategy."

The report also found that pay-TV subscription rates dropped from 86% in 2015 to 77% in late 2017. Meanwhile, 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 such as Sling TV, or a traditional provider now offering an online video bundle.