With nearly every streaming service investing in live sports, it is clear how much of a hold games and matches have on the viewing public. With sports rights slowly but surely migrating away from traditional TV, this will undoubtedly aid in continuing the trend of consumers leaving pay-TV for streaming in the coming years.
According to strategy firm Altman Solon’s latest Consumer Video Survey, 83% of monthly sports viewers subscribe to either cable or satellite TV. However, Altman Solon’s projections indicate that as sports and live news — which both used to be traditional TV exclusives — move increasingly to streaming, pay-TV is expected to see a substantial drop from 69.3% domestic penetration to 53.7%.
“Live sports and news continue to attract viewers’ attention and drive the growth or decline of Pay TV and streaming services,” Altman Solon partner Matt Rivet said. “U.S. viewers are steadily moving away from Pay TV to streaming services, especially as more content becomes available, but consumer confusion among streaming services and a familiar experience with Pay TV are primary drivers to Pay TV retention. MVPDs need to re-define their value proposition to retain subscribers as content availability and value for money will ultimately decide the winners and losers in the race for subscribership.”
According to the firm, 48% of respondents indicated that they continue to keep their cable and satellite subscriptions primarily out of habit while 34% have it bundled with their home broadband service. And while cutting the cord began as a way for consumers to save money, as streamers raise prices and stacking more and more services becomes required to keep up with the most desirable content, price isn’t necessarily on streaming’s side as much anymore.
Altman Solon’s information shows that 62% of those surveyed maintain or return to a pay-TV subscription because of its cost while only 42% do so because of convenience. But as traditional broadcasters increase their streaming investment, more reticent consumers are likely to be willing to make the change.