Ongoing Decline of U.S. Pay-TV Service Providers
Of U.S. households that have a live streaming vMVPD service, 44% switched directly from a traditional pay-TV service, and 26% also have a traditional service. Plus, 18% switched from another vMVPD service, 12% were non-subscribers to any type of service.
Video Streaming Subscriptions Rise as U.S. Pay-TV Declines
“The virtual services, which rely on unmanaged broadband delivery, added more than 1.8 million subscriptions in 2019. Though a bright spot, it did not overcome the long shadow of cord-cutting that saw a reduction to combined traditional and virtual subscriptions of more than 4.5 million in 2019.”
via S&P Global
Update: The Video Entertainment Streaming Wars
“As a number of powerful media companies enter the streaming video marketplace in a very big way, choice in this promising arena has never been greater. The clamor to get involved in the streaming boom is certainly growing louder, but when it comes to determining successes and failures, the consumer is the ultimate decider.”
Game Over: Streaming Video Displaces Legacy Pay-TV
“43% of consumers in the 11 countries surveyed now pay for SVOD services as opposed to 36% who live in households which pay for pay-TV. Only Canada, Sweden and the Netherlands still have pay-TV penetration at a higher rate than SVOD.”
Why the U.S. Pay-TV Subscriber Decline is Unstoppable
U.S. multi-channel defections ballooned in the third quarter, amplified by tighter promotions at a time when consumers need little additional motivation to seek OTT alternatives, according to the latest market study by Kagan, a TMT research group within S&P Global Market Intelligence.
Connected TV Advertising Gains Momentum in U.S. Market
U.S. advertisers will spend almost $7 billion this year on connected TV ads. Connected TV is growing rapidly as advertisers look to target audiences watching long-form, premium digital content on their living room screens.
U.S. Pay-TV Provider Video Subscribers Decline
The largest pay-TV providers in the U.S. — representing about 93% of the market — lost about 1,530,000 net video subscribers in 2Q 2019, compared to a pro forma net loss of about 420,000 subscribers in 2Q 2018. The future outlook is equally gloomy.
Savvy Advertisers Adopt Streaming Video Platforms
Advertising expenditure attributed to OTT TV episodes and movies will more than double between 2018 and 2024 to reach $56 billion across 138 countries. Online TV and video ads have been considerably boosted by the rapid growth in mobile advertising.
via Digital TV
U.S. Video Entertainment Market Disruption Update
U.S. pay-TV ‘cord cutting’ in 2018 increased by 25% from 2017, due to the overall growth of SVOD internet streaming services. Satellite pay-TV providers suffered the largest loss of subscribers, followed by cable and telco service providers.
via MIDiA Research
Video Entertainment Industry Disruption is Unstoppable
In markets such as North America and Europe, traditional pay-TV operators have jumped into the OTT market to improve subscriber churn by providing less costly video service. Can they compete with the innovative OTT providers? Is this already a lost cause?
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