Parks Associates released the results of new survey recently, which revealed that a fair number of U.S. households that have broadband access and some kind of over-the-top (OOT) device, but do not subscribe to pay-TV. According to Parks’ research, more than 8 million domestic homes form this very definition of cord-cutter, or cord-never-had-er. The 7% figure is significantly higher than that of the rest of the Western world, where only 4% of such households feature this configuration.
Still, this number gives credence to HBO and Showtime’s efforts at breaking the bonds of pay-TV by releasing standalone applications that feature their own content. Even some pay-TV operators, like Dish Network and Rogers, are jumping on the OTT bandwagon with new, unbundled services. “The OTT video services marketplace continues its rapid rate of change, impacting the video ecosystem across world markets,” said Brett Sappington, director of research at Parks Associates. “While operator attempts at TV Everywhere have made little impact, OTT video services are experiencing a boom.”
The emphasis puts an imperative on broadband, especially whole-home Wi-Fi, as the backbone supporting many of these services. We expect the trend to only increase as consumers continue to stream and enjoy more OTT TV in more places at home.