Thursday, August 05, 2021

On average, cord-cutters are spending $85 per month on OTT services

New research report examines consumer trends in unbundling and rebundling video services 

New research from Parks Associates finds cord-cutters are spending $85 per month on average for their online pay-TV or standalone subscription-based services, roughly $30 less than what they were paying for traditional pay-TV service. The firm’s Quantified Consumer: Cutters, Nevers, and the Rebundling of Video, examines consumer trends in unbundling video services and the recent phenomena of consumers rebundling their service portfolio because of a fragmented video content marketplace.

“Cost concerns drove many consumers away from traditional pay TV, and OTT services are delivering on the promise that they can offer desired video content at a considerably lower price point,” said Elizabeth Parks, President, Parks Associates. “But we find 47% of cord-cutters subscribe to four or more OTT services, so in order to have an optimal video portfolio, they are creating their own video bundles by stacking OTT services.”

Cord-cutters currently spend nearly twice as much monthly on OTT services as cord-nevers. There are more than six million cord-nevers, US broadband households who have never subscribed to traditional TV, and they are also less likely to own key streaming video products such as smart TVs and streaming media players. By contrast, 58% of cord-cutters own a smart TV, which is roughly equivalent to the national average, so cord-cutters demonstrate an affinity to video content and services that make them a valuable segment for providers to target.

“As they migrate away from traditional pay TV, cord-cutters seek service offerings that more closely meet their video content needs with the added value of flexibility at a lower cost,” Parks said. “OTT services have to continually deliver flexibility and customization at a reasonable cost to keep these subscribers engaged and retain them on an ongoing basis.”

For more information on Cutters, Nevers, and the Rebundling of Video, contact sales@parksassociates.com.

To request data or an interview, please contact Rosey Ulpino at rosey@parksassociates.com, 972.996.0233.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

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