There is a direct correlation between consumer adoption of streaming online TV services and the attrition of conventional cable, satellite and telco television services, according to results of a nationwide consumer survey, published Monday by UBS.
The study, which was released as part of the equities research team’s update on the telecom and pay TV marketplace, has tracked the correlation over time beginning in July 2016, and the pattern appears to be accelerating with the adoption of streaming online television.
Only 69% of consumers who stream online TV services said they also subscribe to traditional pay TV services, which is down 24 percentage points from 93% who said so in July 2016.
“The video market in aggregate (i.e., traditional video plus vMVPDs) appears stable at this point with 101 million subscribers,” UBS analyst John Hodulik writes in the report, adding, “However, our biggest question is the sustainability of this base. We worry that this number is boosted by double-counting video subscribers while a growing number of DTC offerings are in the pipeline. Given the attractive promotional pricing and bundling of streaming services, customers have been subscribing to both traditional pay TV and streaming services.”