Study: Consumers Prefer Netflix, Hulu, Redbox to TV Everywhere

Attention, multichannel service providers: Consumers are cheating on your TV Everywhere efforts.

More than two-thirds of smartphone and tablet users haven’t downloaded their pay-TV provider’s app, and nearly three-quarters never buy movies to watch from the VOD service. Those are among the findings in a just-released report from video discovery service Digitalsmiths that surveyed more than 1,850 pay-TV customers in the second quarter. While many service providers have been concerned about the prospect of cord-cutting, Digitalsmiths said consumers are increasingly “cord-cheating” by turning to other over-the-top services such as Netflix, Redbox and Hulu rather than the ones provided by their pay-TV company. That’s not necessarily a bad thing. But it is a danger signal for the long-term viability of TV Everywhere.

To set the scene, Digitalsmiths reported that 4.3% of survey respondents plan to “cut” their cable/satellite service in the next six months. About 27.5% of respondents said they were on the fence about cutting their service. The primary reason for complaints? Fees, poor service and limited channel selection. However, many pay-TV customers are relying on over-the-top services increasingly.

When asked why they turned to services such as Netflix and Hulu, about 53% of respondents cited convenience, while 48% said the lower cost. Some also noted the selection on OTT services is better and they’re easier to use. These findings should serve as warning signs to pay-TV providers to make their TV Everywhere services more user-friendly and accessible. Of the respondents who are potentially future cord-cutters, 41.8% said they’d consider keeping their pay-TV provider if they had an easier time finding shows to watch.

Right now, consumers aren’t using TV Everywhere services to a great degree. Digitalsmiths said 68% of smartphone and tablet owners have not downloaded the TV app from their providers. What’s more, more than half didn’t even know their pay TV provider had an app. About 35% of pay-TV users, however, have a subscription to an over-the-top service.

Couple these results with recent findings on the reach of TV Everywhere. Earlier this summer, The Diffusion Group said that while TV Everywhere services now reach about 45% of TV homes, or about 43 million households, the rollout is taking longer than expected.

1 comment about "Study: Consumers Prefer Netflix, Hulu, Redbox to TV Everywhere".
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  1. The digital Hobo from, September 6, 2013 at 1:02 p.m.

    People will complain about anything. As interesting as it is, you have to take this data with a large grain of salt. "Limited channel selection" can't be a serious complaint from anyone today. Maybe the TV folks need to admit that their problem is a relative dearth of good programming compared to the plethora of channels available. Limited "good stuff to watch" might be a legit complaint. The lack of downloads of the providers apps should be a huge indicator that people don't want to watch whats currently available, regardless of what screen its available on.

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