By 2024, the number of households subscribing to traditional pay-TV services in the United States will have fallen to 76.7 million.
In a new report, Video Services: State of the Market, Parks Associates says its forecast will represent the lowest penetration in a decade, representing a 27% fall.
“There has been substantial innovation over the years, but streaming’s debut changed the trajectory of the modern video service industry,” said Paul Erickson, Director of Research, Parks Associates. “The evolution of streaming video has given consumers immense choice in how, when, and what they watch. The ease of trialing, subscribing, and cancelling services has created new dynamics and challenges for content companies and service providers.”
As traditional pay-TV companies make their move to streaming, churn across all OTT service providers is increasing, and services are struggling to retain their viewers. Parks Associates data indicates that OTT subscription services average a 48% churn rate in the first quarter of 2022, which is a ten percent increase in just two years.
