Thursday, April 02, 2015

OTT Extravaganza: An Explosion of Choice Should Put Cable on Notice

So is cord-cutting becoming a real possibility as content options expand? You betcha, say the analysts.

Parks Associates forecasts 7 percent of U.S. broadband households could cut the pay-TV cord this year as more and more options hit the market.

“The pay-TV industry is experiencing a slow crisis in terms of paying customers,” said Brett Sappington, director of research at Parks. “Content is key to attracting and retaining consumers, and consumers are now looking beyond pay TV for that content.”

Also, in the past, traditional pay-TV could rely on the fact that they offer a convenient aggregation point for content thanks to the set-top box. But consumers are increasingly willing to make use of a Roku box or the like, switching between apps to get the content they want from various subscription services. The same goes for tablet apps. And with search options available that index OTT service catalogs, content discovery is becoming easier too.

“Consumers have extensive content choices, including live TV, VOD, and OTT streaming, and they are using multiple interfaces to access desired content,” said Barbara Krause, director of research at Parks.

From the article "OTT Extravaganza: An Explosion of Choice Should Put Cable on Notice" by Tara Seals.

Next: Cablevision Grabs the OTT Ring and Goes for It
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