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ABI: Pay-TV Companies Need to Embrace Online Video

29 Jun, 2011 By: Chris Tribbey

Only 10% of respondents to a recent ABI Research study on consumer electronics in the home said they did not subscribe to a pay-TV service, but pay-TV operators should adjust now and offer more online video options, to head off cord-cutting, the firm concludes.

“Now is the time for pay-TV operators to act,” said ABI practice director Jason Blackwell. “Currently the services on connected consumer electronics platforms are commanded by a few early leaders. Netflix and YouTube, for instance, are the clear consumer favorites for online video, while the divide is even greater for social networking where Facebook captures 97% of social networkers on CE devices.”

Respondents to ABI’s survey that own connected CE devices reported spending between seven and eight hours a week streaming, and pay-TV operators should continue facilitating this behavior, Blackwell said.

“In a relatively fragmented connected consumer electronics market, the pay-TV package is still the best means to get the widest range of content,” he said. “In addition some programming such as sports and premium content is still pay-TV-centric, even with TV Everywhere initiatives.”

The survey involved 2,000 American consumers.

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