13 December 2016 US online pay-TV subscriptions projected to soar this Christmas but providers will struggle to keep them, Paywizard survey reveals Share
70% of US consumers projected to subscribe to Over-the-Top (OTT) TV services such as Netflix and Hulu this Christmas
Growth boosts both big brand and niche players, with 10 pay-TV operators each having 5% uptake
Operators likely to struggle with post-Christmas retention, as 45% of first-time subscribers plan to cancel within six months
London, 13 December 2016 - US television audiences are leading the way in adoption of Over-the-Top (OTT) TV services such as Netflix and Hulu, as the proportion of American consumers currently subscribing (55%) or preparing to subscribe (15%) to paid video-on-demand services this Christmas is projected to soar to 70%, research from subscription, billing and CRM specialist Paywizard reveals.
However, it's clear that many pay-OTT subscribers consider OTT subscriptions to be an on-again, off-again activity, as 45% of first-time Christmas subscribers intend to cancel within six months - just below the global figure of 50%. US women are far more likely to cancel with 50% of those looking to subscribe ahead of Christmas intending to terminate a subscription versus 40% of men.
As the world's most valuable pay-TV market and home territory for international giants, which also include HBO and Amazon Prime Instant Video, the US has seen consistent growth in both big brand and niche players. The research shows 10 pay-TV operators each have at least 5% uptake amongst existing subscribers, making the US the leader in terms of competition across the six key markets surveyed for the global study of TV trends during the Christmas season.
Although the survey highlights that planned uptake in the US is slowing from its 2015 level, the US remains a buoyant market, with 55% of consumers - the most in any nation surveyed - already having at least one OTT subscription. This is a sharp rise from the 36% last year. In addition, 26% of US consumers plan to take a service for the first time or add one this Christmas, although this is down from 31% last year - with the US the only territory that showed a decline in planned uptake.
The survey of 6,200 consumers worldwide - including 1,042 Americans - was commissioned by Paywizard and conducted by Research Now. It also reveals 58% of Americans plan to watch more TV than usual this Christmas. Furthermore, in the run-up to the holiday season, 15% of all consumers plan to sign up to a pay-OTT service for the first time, while 11% of existing pay-TV subscribers intend to add an additional service. The survey also shows 87% of US consumers now pay for some form of TV service, including cable, satellite and OTT services.
Bhavesh Vaghela, Chief Marketing Officer at Paywizard, says: The US pay-TV market is the most competitive and innovative in the world, with a rich mix of original, studio and sports content across a wide range of distribution platforms and business models. While growth is now starting to slow, it is clear that the US leads the way in households with multiple pay-TV subscriptions, suggesting there are still great opportunities for providers challenging the big players.
A range of devices for Christmas
In terms of devices, 43% of all US respondents say they will use at least one type of mobile device for their holiday viewing - down from 48% last year, while viewing traditional and smart TVs and set-top boxes is up. This can be explained by the rise of embedded pay-OTT services in traditional pay-TV packages such as Comcast's inclusion of Netflix in its XFINITY service.
Mobile device TV viewing has also dropped because watching online services via streaming devices has increased in popularity, with use of gadgets such as Chromecast, Apple TV, Roku and Amazon Fire rising from 15% last year to 19% in 2016 - the highest use in any market surveyed.
Smaller players challenging the big brands
With 61% of pay-TV consumers taking its service, Netflix remains the leader in the US but even smaller challengers such as VUDU and Sling TV are successfully carving out their own niches, given the US is a market of 124 million households with high levels of broadband connectivity.
Vaghela notes: US audiences are potentially at the start of a trend towards an a la carte approach to TV services, moving from a single multi-service operator model to a collection of pay-OTT services with exclusive TV, film studio, sports, kids and niche content. This is still at an early stage but eventually operators will have to find ways to build strong subscriber loyalty through consistently positive customer experiences.
While content and value for money remain major drivers of OTT pay-TV, subscriber management and customer experience are revealed to be critical factors as well. Those planning on taking a first OTT subscription over Christmas listed as the three main factors that would lead them to keep it:
Good value for money (61%)
Content they want to watch (39%)
Package flexibility (33%)
Vaghela says: For OTT operators, now is the time to seize opportunities in the US, as the market is still growing and consumers are subscribing to multiple brands. Although there are early signs of saturation, there is still a huge amount to play for - especially among the 30% of consumers who are not yet interested in pay-OTT. The data shows 66% of these holdouts are over age 45, which suggests that better targeted marketing will be vital to reaching this untapped segment.
Most recent headlines
17/02/2025
TVBEurope talks to the team who brought a piece of broadcasting history back to life on BBC Wales last night
By Jenny Priestley
Published: February 14, 2025 ...
17/02/2025
Eligible studios will receive the relief directly from their local authorities, with no need to submit a claim
By Matthew Corrigan
Published: February 17, 20...
17/02/2025
As DEI initiatives come under pressure in the USA, supporters of Rise, which promotes diversity in the media and entertainment sector, discuss the continuing im...
17/02/2025
EIB Global loan will partially fund SES's continued O3b mPOWER medium earth orbit (MEO) fleet expansion enabling additional capacity worldwide. O3b mPOWER s...
15/02/2025
At Nielsen, Business Resource Groups (BRGs) play a critical role in nurturing a ...
15/02/2025
Innovation to empower creativity: Explore the latest in Lightroom
Rob Christensen February 15, 2025
0 Comments
Whether you want to remove distracting ...
15/02/2025
Wisycom, a worldwide leader in RF technology and provider of wireless solutions, announces a new distribution agreement with EQUAPHON. An Argentinian profession...
15/02/2025
DPA Microphones, the leading manufacturer of high-quality microphone solutions, is pleased to welcome Nicholas Nick Mariano and Vincent Vince Divine to the ...
15/02/2025
Tuxera, a leading provider of quality-assured file systems and networking solutions, will showcase how Tuxera Fusion SMB enables unprecedented performance for m...
15/02/2025
Bitmovin's latest Video Developer Report indicates an increasing role of AI, the slow adoption of next-generation codecs, and continuing challenges when it ...
15/02/2025
When Michelin Enterprises set out to promote its prestigious Hotel Guide in the new Sleepless in the Kitchen , campaign, veteran German/Slovenian gaffer Robert...
15/02/2025
Formula E, the world's first all-electric racing series, revolutionizing motorsport with cutting-edge technology and a commitment to sustainability has sele...
15/02/2025
Agile Content, a global leader in TV and video technology solutions, announces its rebranding to AgileTV.
The transition to AgileTV stems from a commitment to ...
15/02/2025
Hiltron Communications will promote the latest additions to its range of satellite communication products, systems and supporting services at GovSatCom 2025. Th...
15/02/2025
Following the success of the original Airglow Booklight, DoPchoice debuts a new addition to their inflatable line the Float. This lightweight, inflatable, round...
15/02/2025
LAS VEGAS Marshall Electronics has announced that it will debut its newest camera controller, the RCP Plus, at the 2025 NAB Show at Booth N2649 between April 5 ...
15/02/2025
ATLANTA Gray Media has named Blake Sebo as the next general manager of KTUU and KYES, Gray's NBC and CBS affiliates in Anchorage, Alaska....
15/02/2025
KOKKEDAL, Denmark DPA Microphones will feature its new CORE+ technology for distortion-free microphone sound at the 2025 NAB Show, April 5-9, in Las Vegas....
15/02/2025
SWANSEA, U.K. QuickLink will launch StudioPro-NDI and StudioPro-3, two new models of its QuickLine StudioPro video production platform, at the 2025 NAB Show, Ap...
15/02/2025
Live From 2025 NBA All-Star Game Weekend: After 25 Years, Turner Sports All-In F...
15/02/2025
NASCAR Driver Cam on Max Embraces Cloud-Based Workflow for 2025 Season Chris Brown of WBD Sports says Mobii will play key part in delivering signals from the tr...
14/02/2025
Last month, we officially launched the Spotify Partner Program, a powerful new m...
14/02/2025
From an island off the coast of Lutruwita to the global stage in France SBS & ...
14/02/2025
The future of electro-optical/infrared (EO/IR) land systems is evolving so that ...
14/02/2025
Here are 5 reasons why you should attend ISE 2025
Discover more about Calrec: Learn more about Calrec's legacy of innovation in broadcast audio solutions ...
14/02/2025
World Radio Day: On the same wavelength
By Graham Murray, International Sales Manager at Calrec
To mark World Radio Day, Calrec's International Sales Ma...
14/02/2025
DALLAS and TYSONS, Va. Tegna has concluded a broadcast rights agreement that makes Tegna's KFAA in Dallas the exclusive local television partner of the Dall...
14/02/2025
Amazon's Prime Video has released a new app for Apple TV that the streamer said delivers an improved streaming experiences with faster scrolling, improved s...
14/02/2025
CLEVELAND Telos Alliance announced a software update for its Axia Quasar XR and SR line of audio-over-IP (AoIP) mixing consoles and will show the offering at th...
14/02/2025
Puget Systems Returns to HPA Tech Retreat 2025 with New Analysis Tools for Puge...
14/02/2025
Glass Animals: Tour of Earth Uses Blackmagic Live Production Workflow
Brie Clayton February 14, 2025
0 Comments
80six deploys Blackmagic URSA Broadcas...
14/02/2025
A dispute between Paramount and Youtube TV that would have pulled CBS stations and Paramount's cable channels from the streaming service has been temporaril...
14/02/2025
Colourist Deidre (Dee) McClelland details how she helped shape the distinct look and feel of whimsical Oscar-nominated stop-motion film, Memoir of a Snail
By C...
14/02/2025
BitFire said it intends to introduce forward-looking services that simplify the launch of live production workflows, and enhance real-time collaboration
By Jen...
14/02/2025
The claim by the liquidators is the latest twist in the ongoing saga of the companys collapse at the end of 2021
By Matthew Corrigan
Published: February 14, ...
14/02/2025
A carriage dispute between YouTube TV and Paramount could come to a head today (Feb. 13), with the virtual pay TV provider threatening to pull all of the progra...
14/02/2025
ENGLEWOOD CLIFFS, N.J. LG Electronics USA has opened a new in-house, state-of-the-art virtual production studio at its 360,000-square-foot North American headqu...
14/02/2025
NEW YORK In a bid to help local broadcasters find new ways of monetizing their content, the Coalition for Innovative Media Measurement (CIMM) and TVB have relea...
14/02/2025
WASHINGTON Three Democratic U.S. Senators have sent a stern letter blasting FCC Chair Brendan Carr for the weaponization of the agency for attacking broadcast...
14/02/2025
Years after launching the streaming service Apple TV+ in November of 2019, Apple has finally released a version of its steaming app for Android devices....
14/02/2025
FOOTHILL RANCH, Calif. Red Digital Cinema will make its V-RAPTOR [X] and KOMODO-X camera systems available with Nikon's premier Z Mount, providing filmmaker...
14/02/2025
DAYTONA, Fla. The Fox Sports production of this year's Daytona 500 will see the addition of a few new tech elements and the continued unfolding of the broad...
14/02/2025
Watch Bryson Battles Blind Audition on The Voice Get a Four-Chair Turn Michael Bubl said the Boston Conservatory at Berklee musical theater senior might have...
14/02/2025
2025 Daytona 500: FOX Sports Looks To Ride Super Bowl LIX Momentum Into NASCAR S...
14/02/2025
14 Feb 2025
VEON's Kyivstar and the Come Back Alive Foundation Raise USD 2....
14/02/2025
Max Renews THE PITT, Starring Noah Wyle, For A Second Season
Max
Warner Bros. Television Group
The Pitt
New Episodes Of The Medical Drama From John...
14/02/2025
This year, Technicolor proudly celebrates 110 years of shaping the magic of cinema pioneering color, visual effects, and innovation that bring unforgettable l...
14/02/2025
NBA All-Star: More Games, More Teams, More Music, More Sound From the Court Turner Sports' team will deploy familiar tech to capture all the audio By Dan D...
14/02/2025
LIV Golf Continues To Innovate With Drones, Data-Driven Graphics, and All-Access...
13 December 2016 US online pay-TV subscriptions projected to soar this Christmas but providers will struggle to keep them, Paywizard survey reveals Share 
