Third of US pay-TV households downsize packages | Pay-TV | News | Rapid TV News
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Research from IHS Markit has found that cord-shavers are now cutting as noticeably into traditional subscription services as over-the-top drivers cord-cutters and cord-nevers.
IHS cordshave 11Sep2018

The latest Connected Devices & Media Consumption survey, found somewhat worryingly that overall a third of pay-TV households in the US downsized, or shaved, their packages with operators losing more than seven million subscribers in the past five years, while at the same time online video subscriptions increasing by more than 100 million. Very much a churn risk to pay-TV, cord shavers are more likely to connect their devices to their primary TV sets and are less likely to first turn to their set-top boxes, when looking for something to watch on TV.

Yet the good news is that cord-shavers found that cord shavers are, in fact, content-hungry consumers. They use OTT to complement their pay-TV subscriptions, primarily for access to exclusive or original content. They were found to subscribe to more OTT video services than other pay-TV consumer households. Cord shavers who cited ‘cheaper alternatives available’ or ‘lack of content’ as reasons for downgrading subscribed to an average of 3.7 OTT services, compared to an average of 2.2 OTT subscriptions for all cord-shavers.

The survey also found that cord-cutters were four times as likely to connect a Fire TV device to their primary TV set than all pay-TV households, and nearly six times more likely to connect a Roku Stick. Consumers choosing to cancel their pay-TV subscriptions and rely solely on OTT subscriptions are mostly cost-conscious consumers.

They were twice as likely to subscribe to Sling TV, YouTube TV and other virtual pay-TV services than those consumers choosing to complement their existing pay-TV subscriptions with OTT subscriptions. In cord-cutting households, digital media-streaming devices from Amazon and Roku were the most commonly connected to their primary TV sets.

Consumers in cord-never households were found in the Connected Devices & Media Consumption  survey to have a stronger preference for viewing video on mobile devices. They were also less likely to stack video services and more likely to have specific content in mind, when looking for video content to watch. Cord-nevers also indicated a lower propensity to purchase connectable video devices and subscribe to video services. Dedicated video-streaming device ownership among this group of consumers was found to be largely driven by gifting and promotional offers.