Published on April 5th, 2018 | by Brad Gibson0
Are you a pay-TV ‘polygamist’? The number is growing, survey shows
41 percent of U.S. homes are pay-TV ‘polygamists’, subscribing to traditional cable or satellite services as well as a service such as Netflix, Amazon or Hulu, while 21 percent of households now only pay for a streaming service, according to research from the customer analytics firm Paywizard.
The Show the Love with Customer Experience report surveyed 1,000 consumers across the U.S. and found that more and more people are cord-cutting with post-millennials only subscribing to a streaming service (what the industry calls a OTT, or over-the-top service) and by-passing a cable or satellite package all together.
The survey also revealed that 31 percent of U.S. households boosted their overall TV and entertainment spending by adding a streaming subscription in the last 12 months, while just 17 percent decreased spending as a result of adding a new online TV service.
Moreover, 43 percent of U.S. households plan to add a new pay-TV subscription – whether cable, satellite or streaming service – in the next six months.
The study also found 92 percent of American households have some form of pay-TV subscription. 71 percent have a traditional cable, satellite or IPTV subscription; 62 percent subscribe to a streaming service; and 25 percent have canceled a traditional service in the last 12 months due to a poor customer experience.
The survey results are further evidence of not only people switching from traditional pay-TV solutions to streaming services but that ‘cord-multiples’ – consumers with multiple pay-TV services – are rising and fast becoming the norm.
“Cord-cutting continues to be a major concern for the U.S. cable and satellite TV industry and our latest research shows that it is definitely having an impact on these services,” said Paywizard chief executive Bhavesh Vaghela. “But the survey also reveals that those subscribers we’ve dubbed ‘pay-TV polygamists’ are emerging as a major force…consumers are willing to spend more overall on pay-TV if the customer relationships are managed effectively.”