MONTEREY, CA – Streamed bundles, online subscription services, self-aggregation and over-the-air delivery are helping to erode the number of traditional multichannel subscribers in the U.S., says new research by Kagan, a group within S&P Global Market Intelligence.
Shifting viewing habits have amplified the conditions for change and instability in the market, according to the latest segmentation of video delivery options among U.S. households. While homes with a traditional multichannel subscription are positioned to remain in the solid majority in the five-year outlook, upward momentum lies firmly with alternative services, continues the report. The combined account for a non-multichannel tally is on pace to exceed one quarter of occupied households in 2017 and peak at one third by 2021.
Other projections include:
– Accelerated declines of traditional multichannel subscriptions to 82.3 million, down 10.8 million households over five years;
– The emergence of virtual services from a niche pioneered by SlingTV and Playstation Vue to a mainstream option that accounts for nearly 11 million households;
– The growth of households relying solely on over-the-top delivery of self-aggregated online content will reach nearly 18 million or 14% of occupied households by 2021.
“Changing viewing habits point to mounting losses for traditional video services, and challengers are lining up to capitalize,” said S&P Global Market Intelligence research director Ian Olgeirson, in the news release. “However, the operators are not without significant fortifications enabling expectations for preserving a majority share in the five-year outlook.”
