Nearly 85% of those surveyed in TiVo’s latest quarterly Video Trends Report have a pay TV service, with 37% spending at least $101 a month (and some spending as much as $150 or more), bucking the idea that cord-cutting is rampant today.
However, the report did note that of those 15%-plus who are without a traditional pay TV service, nearly 22% had cut their cable or satellite service in the last year, a jump of 4.5% from a year ago, with 45.6% saying they use an antenna to get basic broadcast networks today.
The top reasons for cutting the cord were the expensive price of traditional pay TV services (79.7%), the usage of streaming services like Netflix and Amazon (57.6%), and the availability of antennas for basic channels (32.5%).
“These results further illustrate how disruptive over-the-top (OTT) streaming services are for the pay TV industry,” the report reads. “Not only did OTT/SVOD subscribers increase by nearly 10%, binge-watching on streaming services spiked as well, illustrating the content is enticing.”
Seventy-eight percent of respondents said they were either “satisfied” or “very satisfied” with their pay TV service. Of those with a pay TV service, nearly 9% said they had switched providers in the last three months, and when asked if they had plans to change their service in the next six months, more than 7% of pay TV subscribers said they planned to cut the cord, while 6.6% said they planned on switching to another provider.
“An increase in satisfaction is positive news for pay TV providers, however it is also important for pay TV providers to keep a pulse on why subscribers are unsatisfied in effort to improve the experience for this group,” the report reads.
The survey, which interviewed more than 3,100 consumers, felt out the reasons behind OTT and streaming growth, with nearly 58% of Netflix subscribers saying the ability to give each household member their own profile was the No. 1 reason they enjoyed the streaming service, while more than 40% said content recommendations based on viewing habits was their top feature.
“Based on these benefits, it seems pay TV providers may not be rolling out user experience upgrades such as recommendations as fast as consumers want them,” the report reads. “Streaming services have the technical ability to test/update UIs more easily and quickly compared to a set-top box — could this be yet another competitive advantage over pay TV, resulting in less churn because content is easier to find?”
In terms of skinny bundles, the report found that in the U.S., the average price respondents would pay for an à la carte package for the top 20 channels would be $28.31, a decrease of 14% over two quarters.