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Growing Niche Market for Lower-Cost OTT Pay-TV Service, says Leichtman Research Group

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Growing Niche Market for Lower-Cost OTT Pay-TV Service, says Leichtman Research Group Image Credit: Leichtman Research Group

New consumer research from Leichtman Research Group(LRG) found that 18-34 year-olds account for 53% of adults in the U.S. that have a live streaming Internet-delivered pay-TV service (like Sling TV, DIRECTV NOW, PlayStation Vue, Hulu with Live TV, or You Tube TV).

Overall, 11% of adults ages 18-44 currently have an Internet-delivered pay-TV service — compared to 3% of ages 45 and above, said the research and analysis firm that specializes in  on the broadband, media and entertainment industries.

Among all that have an Internet-delivered pay-TV service, 93% also have a subscription video on-Demand (SVOD) service from Netflix, Amazon Prime, and/or Hulu. Additionally, 49% of Internet-delivered pay-TV subscribers have a TV antenna for watching over-the-air broadcast TV, and 35% also have a pay-TV service from a traditional (cable, satellite, or Telco) provider.

These findings are based on an online survey of 6,947 households from throughout the United States and are part of a new LRG study, Internet-Delivered Pay-TV Services.

Other related findings include:

 - 12% of adults that moved in the past year have an Internet-delivered pay-TV service — compared to 6% of non-movers

 - Internet-delivered pay-TV subscribers watch these services at home 78% of the time — compared to 80% at home viewing of HBO NOW, and 88% at home viewing of Netflix

 - 69% of current Internet-delivered pay-TV subscribers are very satisfied with their service — yet, 27% are very likely to switch from an Internet-delivered pay-TV service in the next six months

 - 24% of those that do not currently have an Internet-delivered pay-TV service are very interested in getting one

 - 76% of all adults agree that there are specific networks or programming genres that are “must haves” for a TV service in their household — this includes 88% of those very interested in getting an Internet-delivered pay-TV service.

Bruce Leichtman, President and Principal Analyst, Leichtman Research Group
There is clearly a growing niche market for lower-cost/lower-channel live streaming pay-TV services — particularly among younger, more mobile renters, and those living in households with more people. Currently, these Internet-delivered pay-TV services are augmenting other sources of video in home, and consumers are experimenting with the various streaming pay-TV services to discover what combinations of video offerings work best for their household.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn, Facebook 

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