A new report from Parks Associates suggests that the number of households planning to cancel their pay-TV service (potential cord-cutters) has increased, reaching 7% of US broadband households with pay-TV service.
The report, Under Attack: Assessing New Threats to Pay TV, provides strategic recommendations for service providers, app developers, and platform developers as consumers turn increasingly to OTT and non-linear content options.
Brett Sappington, Director of Research, Parks Associates calls the state of affairs a “slow crisis” for pay-TV. “Content is key to attracting and retaining consumers, and consumers are now looking beyond pay TV for that content,” he writes. “The new deal between Apple and HBO to stream the HBO Now streaming service to Apple devices is just the latest example. At the same time, companies like Google and Amazon are getting into the content creation business, providing a new competitive threat to the traditional ecosystem.”
Announcing the new report, Barbara Kraus, Director of Research, Parks Associates, adds that, for consumers, the lines are increasingly blurring between CE makers, operators, and content providers, so they will make their decisions, first and foremost, based on who has the desired content and secondly on who provides the easiest method to find and consume that content.