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Survey: 20% of Video Streamers Plan to Cut/Downsize Pay-TV Service

17 May, 2016 By: Erik Gruenwedel

The fact 20% of respondents in a new survey of video streamers conducted by The Diffusion Group plan to downsize or cut their pay-TV service in the next six months may not be newsworthy in an evolving digital age. But when combined with a recent Nielsen survey that found 65% of pay-TV respondents also stream video, the trend is noteworthy.

The TDG study, conducted on behalf of CSG Systems International, found streamers watch more than 26 hours of television each week, with 50% spent viewing subscription streaming services such as Netflix, Hulu and Amazon Prime.

“Two-thirds of U.S. broadband households use a subscription video service like Netflix,” Michael Greeson, TDG co-founder and director of research, said in a statement. “Forty percent of this segment subscribe to multiple streaming services, making them prime prospects for value-added services that deliver a new level of user engagement and blend multiple services into a single experience.”

Survey respondents indicated a desire for their pay-TV services to incorporate multiple streaming services into their service offering. Consumers expressed interest in a new bundle that offers the ability to search for content across multiple services, use a single recommendation engine, receive multi-service discounts and have unified billing. Indeed, 60% of streamers see value in having a single bill for all their streaming services.

“Consumers are building and bundling their video experience with multiple providers, opening an opportunity for incumbent pay-TV providers,” said Brian Shepherd, president of broadband, cable and satellite business at CSG International.

Shepherd said pay-TV providers should incorporate video streaming into their channel packages to deliver the video bundle of the future.

“They already have the network infrastructure, customer preference history, analytic insights and billing relationship to tie everything together in a way that delivers innovative new value to the market,” he said.

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