Providing market intelligence for more than 35 years

In The News

Parks: Nearly Half of U.S. Broadband Homes Have Cut Pay-TV Cord

Parks Associates’ latest data finds that 56 million (46%) of U.S. internet households have severed ties with their premium television provider, underscoring the dominance of streaming video services. Another 12% of U.S. broadband households have never subscribed to any sort of traditional pay-TV.

Parks says service providers are adapting to the secular changes by offering competitive pricing, bundling options, and hybrid monetization strategies. The rise of ad-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) services underscores the demand for lower-cost alternatives, and subscription-based platforms continue to experiment with tiered pricing and content exclusivity to retain customers, according to Parks.

“Cord Nevers represent a unique opportunity for streaming providers,” Jennifer Kent, VP of research at Parks, said in a statement. “By definition, this segment of the market has not paid for traditional TV, but streaming services have found a way to monetize a segment that has not previously valued subscription video or has grown up in a streaming-first market, with different conceptions of what subscription video should be.”

Parks reports that 59% of subscriptions across the eight leading SVOD services — Max, Netflix, Disney+, Discovery+, Paramount+, Prime Video, Hulu and Peacock — are basic with ads.

To achieve profitability and strike a balance for consumers, Parks said the most-popular streaming services now operate under a hybrid model, offering both ad-free and ad-supported plans to viewers. Ad-based tiers are cheaper for consumers and more profitable for businesses, making them a win-win for both parties.

“Consumers are worn down from continued spending increases in streaming, while years of high inflation are driving consumers to pare down accordingly,” Kent said in a statement. “This only intensifies the competition among streaming vendors and will fuel more growth of subscription tiers with ads and free ad-based services.”

From the article, "Parks: Nearly Half of U.S. Broadband Homes Have Cut Pay-TV Cord" by Erik Gruenwedel

Previously In The News

Amazon's DVR Scheme May Be Taking Shape

"Over the past 18 months and longer we've seen a renaissance in live content, and a lot of that content is moving online with consumer habits," said Brett Sappington, senior director of research at Pa...

Sonos Welcomes Devs With Open APIs

The Sonos Sound Platform allows the company not only to better serve its installed base, but also broaden its product portfolio, making its brand more attractive to high-end customers, said Brad Russe...

Voice Control for Connected Entertainment: Challenges and Opportunities

Smart speakers are becoming a more common platform for controlling connected entertainment due to a rapid increase in popularity and ease of use. Household penetration of smart speakers is expected to...

AI Meets VR in New Nvidia Tech

"Currently, VR content creation is prohibitively costly, and it is difficult to create the kinds of experiences consumers are looking for," explained Kristen Hanich, a research analyst with Dallas, Te...