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The Connected Consumer Survey 2015: pay-TV and OTT video services

The Connected Consumer Survey 2015: pay-TV and OTT video services

Pay-TV operators have reached most of their addressable market, which leaves little room for growth in subscriber numbers. Meanwhile, OTT video services are increasingly popular and viewing habits are changing as video content is viewed on multiple devices. This report discusses these trends using insights gained from our 'Connected Consumer Survey 2015'.


Executive summary
The market for pay TV appears to be almost saturated, but multi-device and OTT partnerships present the next growth opportunities
Netflix dominates the OTT video market in countries where it has been launched, and appears to have few strong competitors elsewhere
Smart TVs are most likely to be used to view paid-for online content and customers now expect a multi-screen experience
Recommendations
Recommendations
Pay-TV operators and customer retention
No access technology was dominant across the panel, but the most common TV technology in three of the seven countries was FTA
FTA TV services are the main barrier to pay-TV adoption, but satisfaction varies significantly by age
Price is main driver of intention to change provider overall, but younger respondents were more concerned about specific content
In Poland, Spain, the UK and the USA, the operator that had the highest NPS for fixed broadband also had the highest score for pay TV
Respondents using service combinations that include fixed broadband and voice had a lower intention to churn than those with standalone TV
The relationship between pay TV and OTT video
OTT video is usually adopted alongside pay-TV services
Netflix dominates the OTT video market in countries where it has launched, and appears to have few strong competitors elsewhere
Pay-TV operators should offer access to OTT video on their set-top boxes to enhance customer experience and improve retention
Integrating Netflix into set-top boxes could reduce pay-TV churn by making it easier to view OTT video services
Devices and engagement with OTT video services
PCs and TVs have the highest engagement among users and Internet-enabled TVs will increase the number of potential OTT video customers
Consumers now watch OTT video on three device types on average and expect a seamless multi-screen service
Smart-TV owners were most likely to use this device to watch paid-for online video content regularly, while tablets were more popular than PCs
Video streaming devices are most often used by smart-TV owners, which suggests that smart TVs do not yet have all the desired features
Methodology and panel information
Methodology
Panel information: France and Germany
Panel information: Poland and Spain
Panel information: Turkey and UK
Panel information: USA
About the authors and Analysys Mason
About the authors
About Analysys Mason
Research from Analysys Mason
Consulting from Analysys Mason
List of figures
Figure Countries covered individually in this report
Figure Reasons for not having a pay-TV service, by age group
Figure Penetration of the most popular paid-for online video services, by country
Figure Penetration of paid-for online video services, by device type
Figure Penetration of pay-TV services among respondents with TV sets, by country
Figure Reasons for not having a pay-TV service, by age group
Figure Reasons cited for intending to change pay-TV service provider in the next months
Figure Net Promoter Score for pay-TV service providers, selected countries
Figure Intention to change pay-TV service provider within months, by type of service bundle, including and excluding AT&T's customers
Figure : Proportion of respondents with pay-TV or OTT services, or both, by country
Figure : Penetration of the most popular paid-for online video services, by country
Figure : Device types that respondents plug into their TV sets
Figure : Intention to change pay-TV service provider within months, with and without Netflix usage, UK
Figure :Average hours of use per day, by device
Figure :Device types used to access paid-for OTT video services, and
Figure : Frequency of online video content access in the previous onths, by device type
Figure : Interest in or ownership of smart TVs by ownership of video streaming device type

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