Only a third of cord-cutters plan to use paid OTT as pay-TV substitute
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Joseph O'Halloran
| 26 October 2018

Research from Parks Associates has revealed that consumer perception of a poor value proposition in pay-TV remains the top trigger for changing, downgrading, or cancelling services.

Moreover, the research found that the vast bulk of those using over-the-top services have no interested in using the non-subscription channel to buy alternatives. Indeed, among households that have made pay-TV changes in past twelve months, the study found that a only 33% cord-cutters and 10% of switchers or cord-shavers plan to use paid OTT services as a substitute or alternative for pay-TV.

“The primary driver for pay-TV cancellation and downgrades continues to revolve around pricing and perceived value,” explained Parks Associates senior director of research said Brett Sappington.

“While some consumers consciously plan to use OTT video services to address the absence of pay-TV content, most consider each offering on its own merits...The deeper issue is in the influence that OTT video services have on what consumers consider to be a 'good' value. When video services with good quality are available for under $15, it forces operators to justify an $80 pay-TV bill.”