iWorld

Traditional pay TV under pressure from OTT services: Horowitz report

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2018/06/11/TV%3Fcable_ott.jpg?itok=4bpDLOb8

MUMBAI: A recent report from Horowitz Research’s State of Pay TV, OTT and SVOD reveals that three-quarters (76 per cent) of TV content viewers report subscribing to a traditional pay-TV—cable, satellite, or telco—service, down from 86 per cent in 2014.

According to the study, just 71 per cent of 18-34 year-olds subscribe to a traditional pay-TV service, compared to 75 per cent of 35-49 year-olds and 81 per cent of TV viewers 50+. Although TV viewers are watching more TV content than ever before—the study reveals that TV content viewers report watching an average of 6.5 hours of TV a day—the fact that there are many lower cost services competing for consumers’ video budgets is impacting the perceived cost-benefit ratio of traditional pay-TV.

74 per cent of cable TV subscribers, 78 per cent of satellite TV subscribers, and 80 per cent of fibre TV subscribers say that they are satisfied with their TV service overall. However, when asked how “worth it” the TV services they subscribe to are cable, satellite, and fibre TV subscribers are less likely to say that their TV service is worth it compared to most over-the-top services, reveals the study.

public://+.png

Seventy percent of satellite and fibre subscribers and 62 per cent of cable subscribers say that their service is worth it; between 8-13 per cent say their pay-TV is not worth it. On the other hand, 91 per cent of Netflix subscribers say that Netflix is worth the money, and 83 per cent say that Hulu is worth it. Digital pay-TV providers Sling TV and Hulu with Live TV also fare better than traditional pay-TV, with 79 per cent of Sling TV subscribers and 77 per cent of Hulu with Live TV subscribers saying their service is worth it.

In addition to exploring the value of TV and video services, the study also asked how interested TV viewers would be in either switching to a service such as this from their cable/satellite/fibre service (if they currently had pay-TV service) or subscribing to one (if they did not currently have pay-TV service). Nearly half (48 per cent) of pay-TV subscribers express interest in a dMVPD (digital MVPD); this rises to 58 per cent among 18-34 year-olds.

Horowitz SVP of insights and strategy Adriana Waterston says, “The majority of subscribers to over-the-top services like Netflix, Hulu, and Amazon Prime are also multichannel subscribers; a smaller percent of them are cord-cutters and cord-nevers. Those services are essentially VoD ‘on steroids,’ and they have tended to supplement, rather than cannibalise, the services offered by traditional providers.”

While these data are based on a broad, general description of dMVPDs and may not translate into actual cord-cutting, they do indicate a willingness among consumers to explore these services, and cost plays a major role. Nearly all of those interested in dMVPDs cite the lower cost as a key factor why they are interested in a dMVPD. Beyond cost, the viewing and technology experience that consumers have come to expect from over-the-top services is highly valued and, in many cases, more user-friendly than many traditional MVPDs’ set-top box guides.

Waterson concludes, “The new dMVPDs do compete directly with traditional providers by offering linear television, including sports and local channels in many markets, DVR service, and other elements of traditional multichannel, but for a lower price and with the app-driven, consumer-friendly OTT experience that has transformed consumers’ expectations about how and where they can access their content. It is incumbent on traditional players to continue to assert their value proposition at the same time as they pivot their businesses to serve consumers’ evolving expectations.”

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/18/zee5.jpg?itok=f3WsjIB0
ZEE5 to stream 'Bhram' on October 24

MUMBAI:  The OTT giant ZEE5 is coming out with a new series titled 'Bhram' which will be a one of its kind psychological thriller with an extra topping of horror. 2019 is the year that has seen Indian cinema progress to greater heights not just in mainstream cinema but even in the OTT space. ZEE5...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/18/nikhil.jpg?itok=tw0uHXsb
Nikhil Gandhi moves to TikTok from Times Network

MUMBAI: TikTok has appointed Nikhil Gandhi as Tiktok India head. In his new role Gandhi will be responsible development and operation of TikTok India. Prior to the new appointment, Gandhi was associated with Times Network as President and COO. Gandhi has over 20 years of experience in leadership...

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/18/snapdeal.jpg?itok=J6VnH-uO
Snapdeal witnessed 50% growth over last year from two Diwali sale editions

MUMBAI: Snapdeal, one of India’s largest value-focused online marketplaces, concluded the first two of its Bharat-focused Diwali sales on a high note. Snapdeal witnessed a 50 per cent growth over last year from the first two sale editions of this year and is confident of the momentum continuing in...

iWorld e-commerce
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/17/sachin.jpg?itok=tzqdFe5S
Sachin, Sehwag to open for India again

MUMBAI: Master Blaster Sachin Tendulkar, one of the most fearsome opening batsman of all time Virender Sehwag, the legendary West Indian Brian Lara, lethal Aussie speedster Bret Lee, one of Sri Lanka’s most stylish and dependable batsman of all time Tillakaratne Dilshan and the one and only, who...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/17/sacred-games-2.jpg?itok=Uod5pUBv
Netflix’s mobile-only plan in India exceeds expectations; to help invest more in content

Netflix has bounced back in its Q3 2019 financials by posting revenue of $5.245 billion, which was almost in line with analysts’ prediction of $5.25 billion and was up by 31 per cent y-o-y. While the expected earnings per share were $1.04, Netflix boosted that by delivering $1.47. This is almost...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/17/1.jpg?itok=upOxDFu0
Ali Hussein promoted to CEO at Eros Now

MUMBAI: Ali Hussein has been elevated to the post of chief executive officer (CEO) at Eros Now, the digital arm of Eros International PLC. Hussein joined the organisation as chief operating officer in 2018. His experience spans over 15 years in the media entertainment and digital space. Ali has...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/17/zee5.jpg?itok=u_rdJ2L2
ZEE5 and Wework host discussion on changing landscape of the digital world

MUMBAI: Addressingthe rapidly evolving digital ecosystem in India, ZEE5 India and WeWork India today co-created an evening of discussions on the Changing Landscape of the Digital World.Tarun Katial, CEO – ZEE5 India, India’s fastest growing ConTech brand, and Ryan Bennett, CWeO of WeWork India,...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/16/shemaroo.jpg?itok=atyubwGc
ShemarooMe’s platform design gets recognized at ‘India’s Best Design Awards 2019’

MUMBAI: Shemaroo’s video-streaming OTT platform- ShemarooMe's design has bagged India’s Best Design Project 2019 award at the recently concluded ‘India’s Best Design Awards 2019’ organized by Indi Pool for the work done by Fractal Ink Design Studio on its user interface and experience. The award is...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/10/16/rohit.jpg?itok=id4qqfpn
VICE Media Group taps Rohit Tugnait as Commercial Director, India

MUMBAI: VICE Media Group, the world’s largest independent youth media company, is pleased to announce the appointment of senior media executive Rohit Tugnait as Commercial Director for its India territory.  Tugnait will lead the commercial teams based in Mumbai, Bangalore and Delhi and will be...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories