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,”