That younger consumers are turning away from traditional delivery of TV is no surprise, it’s a trend that has been surfaced before and talked about ad nauseam. It’s something I’ve talked a lot about over the past five years in Ooyala’s Global Video Index, as we saw an increasing migration to mobile devices for consumption of all OTT content, especially live sports, and all the while warning that the generation following Millennials could prove to be even less TV-centric.
More research that shows the continuing adoption of SVOD services in the United States: 69% of all U.S. households now are subscribing to at least one over-the-top video service, up from just 52% in 2015. And, the survey counts just Netflix, Amazon Prime or Hulu, just more than 1% of the roughly 220 SVOD services available to U.S. consumers.
While European pay-TV operators haven’t seen the same cord cutting trend as in North America, over-the-top video – both subscription based (SVOD) and advertising based (AVOD) – continues to gain traction on the continent.
A new report from Dataxis said the European pay-TV market grew by just 0.3% in Q1 2018 over Q4 2017, the lowest quarter/quarter net adds on record, ending the quarter with 185 million subscribers. Since Q 1 2017, pay-TV has seen its subscriber base grow 3.3%.
Earlier this year, a survey of pay-TV providers by the Pay-TV Innovation Forum 2017 found that the majority of pay-TV execs believed data and analytics will be critical to pay TV direction over the next five years.
Could second quarter pay-TV subscriber losses in the United States top 1 million, the highest figure ever? In a word, yes.
The second quarter routinely is a weak one for operators and in the current environment – remember the first quarter saw more than 800,000 subscribers cut the cord, according to Kagan – reaching one million may be an easy task.
Skinny bundles from cable operators – and their OTT surrogates like Sling TV – are becoming more common as the companies try to look more attractive to consumers tired of paying for 200-plus channels when they really only watch a dozen or less. Survey after survey has shown that subscribers are hungry for not just a slimmed down offering but also for the subscription savings smaller bundles would engender.
Has cord cutting finally run its course among U.S. operators who have, over the past five years, watched millions of subscribers walk away from traditional pay-TV delivery? Are Millennials – and their following generation, Gen Edge – ready to join Gen X and Baby Boomers in tying themselves to arcane and expensive contracts that deliver bloated tiers of content that they have little interest in watching, let alone paying for?
OTT video viewers may be just about as fickle as traditional TV viewers, with roughly 19% churning some of their SVOD services during the past 12 months, which is down from 20% a year ago, according to a new report.
Could this be the start of the Great Cable Channel Recession? Maybe. Esquire Network, the joint venture between NBCUniversal and Hearst that began in 2013, today announced that it’s going to the promised land – OTT – later this year.
The channel was the victim of the continued erosion of the pay-TV audience, especially male Millennials, the Esquire Network’s primary audience.
Viewing time of live TV continued to decline in Q3, albeit by only a minute in from a year ago, as viewers increasingly tune in to time-shifted TV and online video.
Nielsen said live TV viewing per day slipped to four hours and six minutes in the third quarter, a minute less than in Q3 2015, and a much smaller decrease than the six-minute drop between Q3 2014 and Q3 2015.
The extra minute went to DVR viewing, which increased to 29 minutes from 28 minutes.
New research says worldwide set-top box shipments will increase slightly this year to 273 million from 269 million in 2015.
In addition to the growth of satellite units, cable shipments are also expected to increase modestly. DTT and IP STB demand remains relatively flat, according to researcher SNL Kagan in its annual look at the STB market.
Pay-TV service penetration in Latin America and the Caribbean has reached 57%, according to a new report, with Argentina having more than 87% or its TV homes subscribed to a service, the most in the region.
The report, from the Organización de Telecomunicaciones de Iberoamérica (OTI), found that Puerto Rico has the next highest pay-TV penetration in the region (68%), followed by Uruguay (61%), Mexico (57%) and Costa Rica (54%).