‘Cord-cheaters’ opt for third-party services

More consumers are obtaining their on-demand content from third-party OTT services instead of from their pay-TV provider, new research says.

Digitalsmiths says ‘cord-cheating’ is an “emerging problem” as viewers increasingly use streaming services like Netflix and Hulu.

The research agency says: “Despite the investments in on-demand infrastructure, pay-TV providers are being cheated out of additional revenue possibly due to the quality of the user experience provided by these third-party services.”

The research finds that 35% of respondents have a subscription to one of these OTT services, with just over 22.1% using a third-party rental service.

Nearly four in five – 73.8% say they never purchase video on demand from their pay-TV provider’s catalogue. And 68% of smartphone and tablet owners hadn’t downloaded their pay-TV provider’s app.

More than four in 10 – 41.8% – said they would consider keeping their existing service if their pay-TV provider made it easier to find something they wanted to watch.

The researchers said: “Similar to recent industry reports regarding the top pay-TV providers, 4.3% of survey respondents plan to ‘cut’ their cable/satellite service in the next six months. Even worse, there are 27.5% who are on the fence, answering “maybe” to cutting their cable/satellite service in the next six months.

“Of the survey respondents who are unsatisfied with their service, the top reasons span from increasing fees to poor cable/satellite services and poor channel selection,”

Digitalsmiths: Q2 Video Discovery Trends Report

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