More than 6 million U.S. broadband households cut the cord on traditional pay-TV service between the first quarter of 2019 and the first quarter of Q1 2020, a study disclosed by Parks Associates revealed this week.
The report said those who gave up their traditional pay-TV provider transitioned to over-the-top (OTT) services or broadcast TV via antennas for video content.
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Furthermore, the report found the COVID-19 pandemic has changed how consumers are watching video from both a device and service perspective, that is expected to remain as shelter-in-place orders are relaxed. The study found that U.S. broadband households are consuming on average more than 20 hours of video content weekly on the TV, up almost 40% from 2017.
“When looking specifically at online video content, the smart TV is the only measured device seeing a year-over-year increase as the primary streaming video device,” stated Steve Nason, Parks Associates research director.
“Nearly one-third of U.S. broadband households cite a smart TV as their primary streaming video device, nearly double the rate of streaming media players and computers. Smart TVs are steadily improving their scores in ease of navigation and ability to find content or discover new apps, supplanting other video devices in the house to become the main source for video content. Enhancements such as an improved UX come at an important market inflection point, where consumers are watching more video at home while also cutting the cord on pay-TV, leaving them to search for content on their own, across multiple services.”
The report on “Optimizing the Smart TV Experience” highlights the impact of COVID-19 and the future state of the smart TV experience. It also addresses the importance of integrating a video offering within the smart TV app ecosystem to help drive content discovery and create an optimal user experience that better attracts, engages, and retains video customers.
“We’ve seen broadcasters incorporate smart TVs and connected devices more and more into their app strategy, and those that have are seeing a huge uptick in overall consumption and user engagement,” added Applicaster co-founder and CEO Jonathan Laor commenting on the findings of Optimizing the Smart TV Experience. “Over the past few months we’ve also seen end users going to their mobile devices for subscribing to new services, and a dramatic increase in their consumption on TVs, making TVs the new champions of viewer retention.”
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By Greg Tarr
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