New consumer research from
Leichtman Research Group
indicates that 18-34 year-olds
account for 53% of adults
in the US that have a live
streaming Internet-delivered
pay-TV service (such as Sling
TV, DirecTV NOW, PlayStation
Vue, Hulu with Live TV, or
You Tube TV). Overall, 11% of
adults ages 18-44 currently
have an Internet-delivered pay-
TV service -- compared to 3%
of ages 45 and above.
Among all that have
an Internet-delivered pay-
TV service, 93% also have
a subscription video on-
Demand (SVoD) service from
Netflix, Amazon Prime, and/
or Hulu. Additionally, 49%
of Internet-delivered pay-TV
subscribers have a TV antenna
for watching over-the-air
broadcast TV, and 35% also
have a pay-TV service from a
traditional (cable, satellite, or
Telco) provider.
These findings are based
on an online survey of 6,947
households from throughout
the United States and are part
of a new LRG study, Internet-
Delivered Pay-TV Services.
This is LRG’s inaugural study
dedicated to this topic.
Other related findings include:
l 12% of adults that moved
in the past year have an
Internet-delivered pay-TV
service -- compared to 6% of
non-movers
l Internet-delivered pay-TV
subscribers watch these
services at home 78% of the
time -- compared to 80% at
home viewing of HBO NOW,
and 88% at home viewing of
Netflix
l 69% of current
Internet-delivered pay-
TV subscribers are very
satisfied with their service
- yet, 27% are very likely
to switch from an Internet-
delivered pay-TV service in
the next six months
l 24% of those that do not
currently have an Internet-
delivered pay-TV service are
very interested in getting
one
l 76% of all adults agree
that there are specific
networks or programming
genres that are “must
haves” for a TV service
in their household –- this
includes 88% of those very
interested in getting an
Internet-delivered pay-TV
service
“There is clearly a growing
niche market for lower-cost/
lower-channel live streaming
pay-TV services - particularly
among younger, more
mobile renters, and those
living in households with
more people,” said Bruce
Leichtman, president and
principal analyst for Leichtman
Research Group. “Currently,
these Internet-delivered pay-TV
services are augmenting other
sources of video in home, and
consumers are experimenting
with the various streaming
pay-TV services to discover
what combinations of video
offerings work best for their
household.”
cord-cutting and new younger
users are starting out with OTT
subscriptions. What is more
striking, however, is that twice
as many – 41% – now take both
OTT and traditional pay-TV
services.
“Cord cutting continues to
be a major concern for the US
cable and satellite TV industry
and our latest research shows
that it is definitely having an
impact on these services,”
advises Bhavesh Vaghela,
Paywizard’s chief executive.
“But the survey also reveals
that those subscribers we’ve
dubbed ‘pay-TV polygamists’
are emerging as a major force
that runs counter to the OTT-
only trend.”
The research also reveals
that 31% of US households
boosted their overall TV
and entertainment spend
when they added a pay-OTT
subscription in the previous
12 months, while just 17%
decreased spend as a result
of adding a new online TV
service. According to the
findings, 43% of US households
plan to add a new pay-TV
subscription – whether cable,
satellite, IPTV or OTT – in the
next six months.
“The US is the most
advanced TV market in the
world with high pay-TV
adoption and the research
signals that there is a real
opportunity for operators to
prevent cord-cutting and win
over new subscribers, as the
figures also show consumers
are willing to spend more
overall on pay-TV if the
customer relationships are
managed effectively, adds
Vaghela.
The study also reveals:
l 92% of US households
have some form of pay-TV
subscription
l 71% have a traditional
cable, satellite or IPTV
subscription
l 62% subscribe to an OTT
service
l 25% of respondents have
12% 18-34s ‘virtual’
pay-TV subs
40% US
households ‘pay-
TV polygamists’
US audiences may be
moving away from
traditional cable,
satellite and IPTV
packages but the trend
is being tempered
by the emergence of
‘pay-TV polygamists’ –
households taking more
than one subscription
as they add over-the-
top (OTT) TV service s
– according to research
contained in a report,
Show the Love with
Customer Experience,
from subscription,
billing and customer
relationship management
(CRM) specialist
Paywizard.
The survey of 1,000
consumers across the
United States reveals
21% of households now
only subscribe to OTT
services such as Netflix,
Amazon Prime or Hulu
as their sole pay-TV
package – indicating
TV Everywhere 21