A 5% of US internet households only use a pay-TV service

Parks Associates’ latest update of the firm’s Streaming Video Tracker reveals that just 5% of US internet households have only a pay-TV service, indicating legacy pay-TV companies continue to lose subscribers to streaming video services. “Sixty-five percent of internet households have a smart TV,” Eric Sorensen, Director, Streaming Video Tracker, Parks Associates said. 

Park Associate's research also determines the average annualized industry churn rate for streaming services to be 50%, meaning many streaming services are also struggling to keep their customers.“This platform interface serves as the entry point for many households to their content services,"Sorensen continued. "Competition for attention is extreme, while the continued rollout of the ATSC 3.0 standard gives viewers even more options, so in 2024, we will see increased consolidation, mergers, and acquisitions as all providers must find ways to innovate alongside the greater emphasis on profitability.”

The researcher will highlight its newest streaming and connected home research, and the implications for the markets for connected devices and CE, at  the 18th annual Connections Summit at CES, 9 January in Las Vegas. The firm’s Streaming Video Tracker features monthly updates that analyze the strategies among streaming services and broadband and pay-TV providers to engage customers. Each update also examines the latest changes to streaming platforms, business models, and services.

In addition, traditional telcos are exploring new ways to get their products in front of streaming consumers with services such as Cox’s Neighborhood TV. Cox is positioning this hyperlocal streaming service to expand its influences in its communities and as a gateway to attract consumers to its phone, internet, and TV bundle. Station groups such as Sinclair and Hearst have also launched local streaming services to leverage the consumer desire for local content in this age of streaming. .

“The hyperlocal approach clearly attracts interest from consumers,” Sorensen said. “With the increase of AVOD business models, consumer adoption indicates that relevance is a key factor, namely consumers are likely to turn off services if the service and messaging are repetitive and irrelevant to them. Even manufacturers recognize the need for personalization—for example, LG will be displaying its MyView smart monitors at CES 2024, which the company designed to deliver a personalized experience to the user.”