74% plan to cut cord by 2025 claims report

Almost three-quarters of consumers plan to stop paying for pay TV services within the next five years, claims a new report. 

According to figures from Grabyo, 74% of the 13,000 respondents surveyed in the US, UK, France, Germany, Italy, Spain, Brazil, Argentina, Thailand, Japan and Australia said that they intend on cutting the cord by 2025. Of those planning on ditching pay TV, 26% cited high prices as being their primary reason for cord-cutting.

The report also claims that OTT video streaming penetration has surpassed pay TV – 55% vs 50%.

Users signing up to multiple SVOD services is a much more common trend in the US, with 35% of respondents saying they subscribe to two or more. In the UK, little more than a quarter or respondents said they subscribe to multiple services.

When asked about a top price point, 40% of Brits said that they’d spend up to £35 per month on an OTT platform while 47% of Americans said they’d pay up to US$35 per month.

While OTT is often portrayed as a millennial-focused business model, the study also found that people aged over 65 are increasingly growing savvy to the format with 63% saying that they subscribe to at least one platform.

Grabyo CEO Gareth Capon, said: “Broadcasters, rights holders and publishers need to cater to an audience that is moving away from traditional TV. Flexibility, access and price are important to consumers, which means delivering a multiplatform video strategy that reflects these needs. The transition to cloud services will support this shift, but these changes need to accelerate.”