NEWS24 November 2016

Two fifths of satellite and cable customers plan to cut the cable

Media News North America Trends Youth

US — A study by market research technology firm FocusVision and research agency Zanthus has revealed that satellite and cable providers are facing an uncertain future due to the threat from OTT (over the top) content providers like Netflix and Amazon Video. 

Cut cable TV crop

According to the research, 41% of pay TV (satellite and cable) customers are planning to either cut back or drop their service completely, compared with just 16% of OTT customers.

Just 27% of pay TV customers are satisfied with the value of their service, compared with 59% of OTT customers, and OTT customers are almost 20% more likely to recommend their service compared to pay TV. 

However, pay TV still captures more viewing hours than OTT, with an average of 18 hours per week being watched overall, compared with 11 hours a week for OTT.

Use of OTT providers is higher among millennials: 84% of under 34s subscribe to OTT providers compared with 74% of 35-44 year olds and just 60% of 45-54 year olds. 

'As the behaviour of younger consumers becomes more usual pay TV providers are going to face significant challenges in remaining competitive with over-the-top providers,’ the study said.

'Satellite and cable companies are never going to be able to compete with the likes of Netflix and Amazon on cost, however there are other metrics in which they can and should compete, with the key metric being customer care and service. By making gains in this area they may be able to stop the rot.'