Pay TV Penetration Continues Downward Trend In US


By Jonathan Easton

Almost two-thirds of US households are still subscribed to a traditional pay TV operator, but that amount is decreasing.

According to New Parks Associates consumer research, 62 per cent of US broadband households subscribe to a traditional pay TV service via a cable or satellite provider, down from 69 per cent in Q1 2019.

The firm points out that the gap between households in the country subscribing to OTT services and pay TV is the biggest it has ever been. While 62 per cent subscribe to pay TV operators, more than 70 per cent have at least one OTT subscription, with OTT penetration approaching the level of pay TV in Q1 2017 (75%).

The research also found that households are watching an average of 37 hours of TV per week across pay TV and OTT.

Research director at Parks Associates, Steve Nason said: “The explosion of online viewing options and video consumption came at the same time many shelter-in-place orders were enacted. Households are relying more and more on OTT services for a top-quality entertainment experience.

“The spike in online video consumption, the decrease in pay TV-only households, and the shift of pay TV online are widening the gap between OTT and traditional pay-TV. Traditional services are looking to migrate to the cloud to get the best of pay-TV and OTT.”                         

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