March 17, 2015 | Authored by: Vindicia Team
Multichannel TV Subscribers May Not Go OTT Only
While over-the-top content is growing in popularity among millennial-aged television viewers, it may not get viewing exclusivity just yet. According to a new report conducted by Horowitz Research, new premium channel and standalone streaming services aren't killing cable, despite what people believe.
More specifically, multiplatform viewers who spent at least one hour viewing TV and video content each day spend at least one-fifth of their time streaming TV and video content to their televisions, computer or mobile devices. Although respondents were considered at the "core market" for OTT content and subscription video on-demand services such as Hulu Plus and Netflix, Horowitz found respondents' palates were more diverse in terms of viewing video content.
Overall, more than 60 percent of respondents were multiplatform subscribers.
Multichannel the most popular way to view video
While the research indicates TV viewers aren't ready to completely cut the cord just yet, 20 percent of multiplatform viewers who have multichannel services said they were likely to cut the cord in the near future. Another 25 percent of multiplatform viewers who either do not currently have or never have had a multichannel service said they are likely going to start subscribing to multichannel services.
Clearly, there's growth potential for all players in the video- and TV-viewing markets.
"More than 60 percent of respondents were multiplatform subscribers."
Having access to a wide variety of content on a moment's notice was the primary reason why respondents said they were multichannel subscribers. Citing Horowitz research, eMarketer reported 79 percent of respondents said having access to a large menu of TV and video content was a leading advantage of multichannel TV services.
Today's diverse content provider market has created a multi-use viewer, or one who enjoys the luxuries of having both options at his or her disposal. Consumers who have both OTT and SVOD services as well as a multichannel service aren't quite ready to be cord cutters just yet, even when given the option of adding a stand-alone SVOD service as offered by HBO, Showtime and CBS. As video content viewing continues to mature, providers will have to alter and adapt to meet consumers' needs.
It seems as if TV and video content viewers want flexibility in how they watch TV or stream video. Horowitz Research found 14 percent of multiplatform viewers would create and choose a package without multichannel service that includes at least one of the following service: HBO, Showtime or CBS. While cable TV isn't dead, it's likely OTT and SVOD content will continue to disrupt the TV and video viewing market.
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