The lure of the new in terms of functionality is to provide a spur to the US pay-TV market over the course of 2014 according to a new survey from Parks Associates presented at CES 2014.
The analyst calculates that by the end of 2014 the US will boast over 103 million pay-TV households. And in what is further good news for the industry, it notes that two-thirds of current pay-TV subscribers are interested in features they currently don't have.
Parks found that remote access to DVR content was the most popular feature among pay-TV households without that service, with 31% of subscribers interested in receiving such access. By contrast, just over a quarter (27%) are interested in TV everywhere, and a similar percentage (26%) in personalised recommendations.
Yet despite finding clear evidence for a demand in value-added pay-TV offerings, the analyst warned that the industry had work on its hands to ensure it cashed in. "For these services to succeed, providers must increase awareness of their offerings while balancing cost concerns of their subscriber base," cautioned John Barrett, director, consumer analytics, Parks Associates.
Parks also noted that few US pay-TV providers apart from DISH Network provide remote access to DVR content due to licensing restrictions, and that there would be "tremendous" opportunities for companies with the right market strategies. Parks calculates that at present just under a half 47% of video consumed on a TV set comes from non-linear sources.
"2014 CES announcements and industry trends follow the migration of home entertainment and home management to the Internet through over-the-top (OTT) content distribution, connected devices, smart home services, and the Internet of Things," added Stuart Sikes, president, Parks Associates.
From the article, "CES 2014: 103MN US pay-TV households by end of 2014."
