Parks Associates reports 5% of US internet households have only a pay-TV service

Source: Parks Associates

The Pay TV decline is showing no signs of a halt, with just 5% of US internet households have only a pay-TV service, according to Parks Associates’ latest report.

The market research outfit revealed data shows pay-TV operators will continue to lose subscribers to streaming video services. However, highlighted streaming services are also faced with increasing losses, with a 50% average annualised industry churn rate for SVODs.

Parks pointed to traditional telcos such as Cox are exploring new ways to get their products in front of streaming consumers with services. The company said Cox’s FAST channel Neighborhood TV is a gateway to attract consumers to its phone, internet, and TV bundle. US station groups such as Sinclair and Hearst have also launched local streaming services.

“Sixty-five percent of internet households have a smart TV,” said Eric Sorensen, Director, Streaming Video Tracker, Parks Associates. “This platform interface serves as the entry point for many households to their content services. Competition for attention is extreme, while the continued rollout of the ATSC 3.0 standard gives viewers even more options, so in 2024, we will see increased consolidation, mergers, and acquisitions as all providers must find ways to innovate alongside the greater emphasis on profitability.”

Sorensen added, “the hyperlocal approach clearly attracts interest from consumers. With the increase of AVOD business models, consumer adoption indicates that relevance is a key factor, namely consumers are likely to turn off services if the service and messaging are repetitive and irrelevant to them. Even manufacturers recognize the need for personalization—for example, LG will be displaying its MyView smart monitors at CES 2024, which the company designed to deliver a personalized experience to the user.”