Streaming Video Enjoys Uptick, But Pay TV Challenged

Streaming video continues to grow -- and at times complement -- pay TV viewing.

Market researcher TNS --- in a quarterly survey of some 20,000 U.S. homes -- that while one-third of U.S. homes -- 34% -- have streamed video in the previous month, the majority of those streaming homes also purchased pay TV services. More than 26% watch both pay TV and streaming viewing. Just 8% watch only streaming video.

But Frank Perazzini, vice president of TNT, stated that the pay TV industry will continued to be challenged: “Given the emerging challenges from alternative channels, the sustainability of traditional pay TV service could be vulnerable if new pricing models offer consumers access to the content they desire at lower rates than are available today.”  

Helping keep consumers at bay for pay TV providers could be the new TV Everywhere and other mobile apps, delivering more on-demand viewing.

TV households in transition -- those that are moving -- can be particularly vulnerable to pay TV changes.

About 50% of “mover” households have used streaming in the past month, compared to less than a third (32%) of non-mover households. Furthermore, nearly one in six movers view only streaming video -- compared to just one in 14 non-movers.

And among movers, the overall U.S. home penetration of streaming is at 50%, with traditional pay TV services at 37%.



1 comment about "Streaming Video Enjoys Uptick, But Pay TV Challenged".
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  1. Ed Papazian from Media Dynamics Inc, July 24, 2014 at 8:51 a.m.

    While the number of homes that stream videos at least once a month is growing, the real threat to the pay sector will arise when streaming becomes a frequent activity, not something that is done once in a while. Until that happens---and it requires a lot of engaging program content, not merely a platform, to attain high frequency levels-----pay services will suffer some erosion but not of the magnitude that some are predicting.

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