Survey Reveals Impact of Streaming Video Services on the Future Evolution of Pay TV

May 19, 2016

CSG Systems International, Inc. announced survey findings that reveal new trends in consumer use of streaming video services and the impact of streaming on Pay TV services. In the survey titled Going with the Flow: How to Captivate Video StreamersThe Diffusion Group (TDG), on behalf of CSG, polled nearly 2,000 consumers across the United States who regularly use streaming services to watch video. Survey respondents reported their opinions about watching short- and long-form video content including movies, TV shows, sports and other content across devices and from multiple providers.

Among the most notable findings:

  • 80% of streamers subscribe to at least one streaming video service in addition to, or instead of, Pay TV service from a cable, satellite, or IP-TV provider
  • 79% primarily stream video on their television sets
  • Millennial streamers spend more than 50% of their TV time watching streaming video rather than traditional television and see decreased value in their Pay TV services because of their streaming choices
  • 72% of sports streamers cite sports as their most important streaming service
  • 20% of streamers plan to switch, downgrade, or disconnect their Pay TV services in the next six months
  • 48% of respondents would greatly value centralized search, recommendations, billing and discounts across all of their paid subscriptions, regardless of provider

Streamers report watching more than 26 hours of television each week, with half of this time spent viewing subscription streaming services such as Netflix, Hulu, and Amazon Prime. Notably, streaming services with the highest subscription rates offer original content and sports content. To align with these trends, the ability to offer new skinny bundles and innovative OTT-like services will become increasingly important for Pay TV providers.

Survey responses point to a significant interest in a new type of feature bundle, consistent with the recent market trend of incumbent Pay TV providers working to integrate multiple streaming services into their service offering. Consumers expressed interest in a new bundle that offers the ability to search for content across multiple services, use a single recommendation engine, receive multi-service discounts and have unified billing. In fact, 60% of streamers see value in having a single bill for all their streaming services.