Gartner Research

Subscription-Based VOD and Streaming Video Devices Impact Pay-TV Spending

Published: 19 May 2016

ID: G00298938

Analyst(s): Fernando Elizalde

Summary

Subscription-based video-on-demand services, aided by video-streaming devices, are rerouting consumer spending away from pay-TV services. Product managers must identify content gaps and enhance the experience with offerings that command additional spending on their services.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Subscribers to subscription-based video-on-demand services spend less money on pay-TV services than pay-TV-only subscribers, so pay-TV product managers are challenged to find ways to motivate consumers to subscribe to premium pay-TV packages
  • Households with a streaming video device or a smart TV are more than two times as likely to subscribe to S-VOD as those that don't have an SVD or a smart TV, prompting S-VOD providers to develop a presence in the connected screen
  • Fifty-seven percent of households subscribing to pay-TV and S-VOD services are millennials, so S-VOD providers are urged to make their product attractive to all demographics by making accessibility to streaming content simpler

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