New industry report analyzes how current top trends in the video services market will affect the industry in the future
DALLAS , June 21, 2022 /PRNewswire/ — A new Parks Associates report, Video Services: State of the Market, reveals that pay-TV subscriptions and revenues are on a continuous decline as consumers embrace OTT services. The research firm forecasts that traditional pay TV will decline to 76.7 million households by 2024, the lowest penetration in a decade and a 27% drop from 2014.
“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.”
Traditional pay-TV companies are making their move to streaming and are rebranding, making big acquisitions, and forming new partnerships. As they enter the streaming market, new OTT services join more than three hundred direct-to-consumer streaming services in the US market alone, which are tracked monthly with Parks Associates’ landmark service The OTT Video Market Tracker.
With so much choice and no long-term contracts for streaming video services, 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.
Parks Associates is hosting Future of Video: OTT, Pay TV, and Digital Media in 2022 to examine these trends and explore new strategies with industry leaders and visionary speakers. Future of Video features an in-person conference in December 12-14, 2022, at the Marina del Rey Marriott, sponsored by Adeia, FPT Software, Symphony MediaAI, Comcast Technology Solutions, and Metrological.
For more information on Video Services: State of the Market, contact [email protected]. To schedule an interview with an analyst or to request specific data, please contact Rosey Sera at [email protected] or 972-490-1113.
About Parks Associates
Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.
The company’s expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.
Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com
SOURCE Parks Associates