Pay-TV penetration has stabilized after years of decline, holding at 57% of all U.S. households and in the low-to-mid 50% range among internet households, even as SVOD adoption exceeds 90% and the average subscription TV household now takes more than six video services across pay TV and streaming.
Consumers are managing these larger portfolios without materially increasing overall entertainment spending, intensifying competition for wallet share, according to Parks Associates. “Consumers still value live sports, news, and events, but they increasingly reject the traditional large-channel bundle,” said Michael Goodman, Director, Entertainment Research, Parks Associates.
Among returning pay-TV households, 40% came back within six months and 29% after more than a year. Live sports are a key driver of returns: 37% of returning subscribers cite access to live sports as a reason for resubscribing, while 29% cite access to local news or live TV.
“The research also shows that the longer consumers remain away from pay TV, the more likely they are to choose a vMVPD when they return,” Goodman said. “This behavior is changing the competitive environment, and providers like YouTube TV, DIRECTV Stream, and Charter (Spectrum) are responding with different approaches to packaging.”