Only 5% of US households rely solely on pay TV, Parks Associates reports

In a stark indication of changing viewer preferences, recent research from Parks Associates reveals that only 5% of US internet households now exclusively use pay-TV services. This figure, stemming from the firm’s Streaming Video Tracker, highlights the ongoing decline of traditional pay-TV in the face of the streaming revolution.

While streaming services gain ground, they’re not without challenges. The report notes an average annualized churn rate of 50% for these services. This high turnover suggests that although consumers are flocking to streaming, maintaining subscriber loyalty remains a significant hurdle.

Smart TVs are increasingly becoming the primary means of accessing streaming content, with 65% of internet households owning one, according to Eric Sorensen, director of streaming video tracker at Parks Associates. These devices are often the first port of call for households to access their streaming services, intensifying the competition for viewer attention.

Traditional telcos and station groups are responding to the shift by launching localized streaming options.

“The hyperlocal approach clearly attracts interest from consumers,” Sorensen said. “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.”

Cox’s Neighborhood TV, for example, is designed to strengthen community connections and lure consumers to a broader range of services. Similarly, Sinclair and Hearst are capitalizing on the demand for local content with their own streaming offerings.

The study also underscores the growing importance of personalization in streaming services. This trend is evident in the rise of ad-supported video-on-demand (AVOD) models and products like LG’s MyView smart monitors, which aim to provide a more personalized user experience.

Advertisement