Gap between OTT, traditional pay-TV continues to grow in US | Media Analysis | Business | News | Rapid TV News
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Cord-cutting is getting deeper in the US with research from Parks Associates showing that 82% of US broadband households subscribe to at least one OTT service, up six points year-over-year, while 58% subscribe to a traditional pay-TV service, down four points annually.

Parks Pay TV Adoption 28JUly2021The findings come from the analyst’s latest Consumer Insights Dashboard an ongoing service that analyses the firm’s quarterly surveys of 10,000 US broadband households to track consumer adoption of home services, including home internet, pay-TV, and mobile services.

The research revealed that 25% of US broadband households subscribe to a TV service offering a bundle of live channels via an online provider, including 13% who have both traditional and online pay-TV services. Adoption of vMVPDs, core online pay-TV services that offer bundles of live channels accessible via third-party connected devices, increased four percentage points to 18% in Q1 2021. The study also noted that as cord-cutters or cord-nevers look for a more live/linear video viewing experience online, vMVPD service uptake has picked up.

“The Covid-19 pandemic accelerated many existing trends in the video services market…The steady rise in online pay-TV adoption has made up for some of the significant drops in traditional pay-TV,” commented Steve Nason, research director, Parks Associates.

“Video consumers are looking to online pay-TV services, either from a traditional provider or vMVPD, to offer a similar viewing experience and content offering to traditional pay TV but at a lower price point. However, online pay-TV providers, who don’t typically generate content on their own, have had trouble stabilizing subscriber costs as content fees continue to rise.”

Going forward, said the Consumer Insights Dashboard, consumer preferences would likely continue to shift online as video viewers perceive these services to be less costly, more convenient, and more aligned with how they want to consume video programming.