The percentage of U.S. broadband homes that use only antennas to receive TV has risen steadily in recent years, according to a new study from Parks Associates.
That number has climbed to about 15% amid a trend that has seen a drop in pay TV subscriptions paired with an increase in Internet-only video subscriptions, the research found in the study, 360 View: Entertainment Services in U.S. Broadband Households.
Those numbers could bode well for OTA-OTT combo products, such as the new Air TV Player and Adapter from a subsidiary from Dish Network, that cater to cord-nevers and cord-cutters.
RELATED: AirTV Appears Off to Hot Start
Per the study, 81% of U.S. broadband homes still have a pay TV subscription, but only one-third of them are “very satisfied” with the service. Notably, 31% of U.S. broadband homes take multiple OTT service subscriptions, Parks Associates said.
Additionally, twice as many subs downgraded their pay TV service (12%) than upgraded it (6%) in 2016, and only half as many cord-nevers adopted pay TV in 2016 (2%) versus 2015 (4%).
“Pay-TV subscriptions have dropped each year since 2014, falling to 81% of U.S. broadband households in Q3 2016,” Brett Sappington, senior director of research at Parks Associates, said in a statement. “Several factors have played a part in this decline, including growth in the OTT video market, increasing costs for pay-TV services, and consumer awareness of available online alternatives.”
But pay TV players are adapting, he said, adding that it’s still a challenge for consumers to aggregate and discover their favorite content and view it on their preferred screen.
The smarter way to stay on top of the multichannel video marketplace. Sign up below.
Thank you for signing up to Multichannel News. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.