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Retaining Customers: Content, Platforms & Video Services

For pay-TV providers in particular, the ultimate goal is to retain access to the viewer, and spurred by cord-cutting ears, many of them rapidly designed and deployed TV Everywhere services over the past several years.

Parks Associates defines 'cord-cutting' as the act of discontinuing a pay-TV service in favor of using online video options or other methods to view broadcast TV and movies.

This phenomenon was an ongoing preoccupation for television networks and providers because it generated fears of a consumer exodus to OTT services and a dramatic shift in content revenues. This fear was particularly acute as younger consumers the 'next generation' of TV viewers) are the most likely to turn to online video for their entertainment services.

These fears, while not wholly groundless, have yet to manifest in a way that would cause a restructure of the video services industry in the short term. Among broadband households in the United States, where pay-TV is most prominent, less than 5% have cut the cord, the majority of which did so due to economic considerations. Even among the millennials group, pay-TV penetration remains high, while non-subscribers among broadband heads of households ages 18-24 sits around 15%, with no substantial increase over time.

Table of Contents:

Cord-Cutting & Fears of Lost Subscribers
TV Everywhere
The Platform Wars
About The Authors

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