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More Than 50% of Broadband Homes Watch Internet TV

11 Jul, 2017 By: Erik Gruenwedel

More than half of broadband households watch video streamed to the television, underscoring the ongoing shift in video consumption habits of consumers, including usage of over-the-top video services and the impact on the business of broadcast and pay-TV, according to new data from Parks Associates.

“For years, the television has been the stronghold for the traditional TV industry," Brett Sappington, senior director of research at Parks, said in a statement.

Indeed, today, more TVs are connected to the Internet, either directly or through connected devices like game consoles or streaming media players, such as Roku or Apple TV.

Sappington said the fact that one-half of broadband households stream video on a TV indicates traditional TV consumption is dying. 

“The market has fundamentally changed,” he said.

Parks said 88% of computer-based viewing is from non-linear sources, including Netflix & Co.  Another 72% of non-pay-TV subscribers pay for an OTT video service, which is their primary source for content.

The research firm said broadcasters, cable networks, and pay-TV providers have noted a decline in viewership for live, linear-TV channels and a corresponding increase in on-demand viewing.

More than 60% of households now subscribe to one or more OTT video services, and 33% subscribe to two or more services. Traditional players have taken notice and many have launched their own OTT offerings in an effort to get out in front of the shift.

“The abundance of alternatives is clearly impacting the traditional TV industry,” Sappington said.

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