Finance

Study: OTT Helps Consumers Create ‘DIY Bundles’

Research Says Pay TV, OTT Complementary 8/12/2014 12:00 PM Eastern
TakeAway

A study by Hub Entertainment Research says consumers are using their pay TV and online video subscriptions to create 'DIY Bundles.'

Consumers are increasingly using their over-the-top online video connections to complement their pay TV subscriptions, creating “Do-It-Yourself Bundles” of programming, according to a recent study by Hub Entertainment Research.

 

According to Hub's annual “What’s TV Worth” study, about 73% of pay TV subscribers with broadband  access watch at least some online content and only 27% say they don’t watch online at all. And consumers that subscribe to online streaming services like Netflix, Hulu and Amazon Prime aren’t forsaking pay TV either – 85% of those subscribers say they also have pay TV service from a cable, satellite or telco TV provider.

 

In the absence of an ala carte offering, Hub says that consumers are creating their own bundles with their streaming and pay TV subscriptions.

 

“Mainstream consumers are now fully sold on the idea of online sources as a way to access the TV content they love, at the time and on the screen they choose,” said Hub Entertainment Research principal Jon Giegengack  in a statement. “Although the risk of true cord cutting is low, the greater risk is to traditional linear TV as the first source consumers turn on when they’re looking for something to watch.”

 

According to the study, the average pay TV subscriber uses 2.1 online TV sources in addition to their pay TV subscription. The most common is a pay TV service with Netflix alone (10%), followed by pay TV plus TV network sites or apps (8%) and finally, pay TV with Netflix apps and free content from Hulu (4%).

 

“At the same time, there’s huge variety in the TV bundles consumers are creating,” said Hub Entertainment Research co-founder Peter Fondulas in a statement. “Even the most common providers, like Netflix, are almost always used in conjunction with others. In fact, no one brand has established itself as a ‘one stop shop’ for television—and that now includes Pay TV brands.”

 

The 2014 “What’s TV Worth” study was conducted among 1,500 TV consumers with broadband Internet access, aged 16-64. Findings from the study are available from Hub’s website, www.hubresearchllc.com

Want to read more stories like this?
Get our Free Newsletter Here!