Parks Associates’ new Market Snapshot - OTT and Pay TV: Partnerships and Competition that covers the decline in pay-TV services during the first quarter of 2018. According to the research, 15% of broadband households have “cord-cut” and stopped subscribing to their pay-TV company in favor of OTT streaming services. As heads of households get younger and prefer cheaper, instant streaming alternatives, pay-TV is suffering.

Though still relatively new to the market, OTT streaming services, like Hulu and Netflix, are dominating in the digital entertainment world, with two-thirds of broadband homes subscribing to at least one of them and 38% with multiple subscriptions. These services have caused a quick decline in pay-TV subscribers and encouraged consumers to “shave” their plans down to cheaper plans with less options or cut the cord completely.

For pay-TV companies, joining the OTT market is likely their only hope of fighting back and regaining their lost customers. Many pay-TV services, online and traditional, have begun this process by offering OTT services to consumers on their own platforms and are beginning to see positive effects. With over 200 OTT services in America alone, 2018 may be the year some falter and give pay-TV options the boost they need.