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Multichannel TV Subscribers May Not Go OTT Only

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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Multichannel TV Subscribers May Not Go OTT Only

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

While over-the-top content is growing in popularity among millennial-aged television

viewers, it may not get viewing exclusivity just yet. According to a new report conducted by

Horowitz Research, new premium channel and standalone streaming services aren’t killing

cable, despite what people believe.

More specifically, multiplatform viewers who spent at least one hour viewing TV and video

content each day spend at least one-fifth of their time streaming TV and video content to

their televisions, computer or mobile devices. Although respondents were considered at

the “core market” for OTT content and subscription video on-demand services such as

Hulu Plus and Netflix, Horowitz found respondents’ palates were more diverse in terms of

viewing video content.

Overall, more than 60 percent of respondents were multiplatform subscribers.

3 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Multichannel the most popular way to view video

While the research indicates TV viewers aren’t ready to completely cut the cord just yet, 20

percent of multiplatform viewers who have multichannel services said they were likely to

cut the cord in the near future. Another 25 percent of multiplatform viewers who either do

not currently have or never have had a multichannel service said they are likely going to

start subscribing to multichannel services.

Clearly, there’s growth potential for all players in the video- and TV-viewing markets.

“More than 60

percent of

respondents were

multiplatform

subscribers.”

Having access to a wide variety of content on a moment’s notice

was the primary reason why respondents said they were

multichannel subscribers. Citing Horowitz research, eMarketer

reported 79 percent of respondents said having access to a large

menu of TV and video content was a leading advantage of

multichannel TV services.

Today’s diverse content provider market has created a multi-use viewer, or one who enjoys

the luxuries of having both options at his or her disposal. Consumers who have both OTT

and SVOD services as well as a multichannel service aren’t quite ready to be cord cutters

just yet, even when given the option of adding a stand-alone SVOD service as offered by

HBO, Showtime and CBS. As video content viewing continues to mature, providers will

have to alter and adapt to meet consumers’ needs.

4 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

About the Author: Bryta Schulz

Bryta joined Vindicia in 2013 and serves as Senior Vice

President of Marketing. She is responsible for building brand

awareness, creating go-to-market strategy and promotion, and

driving growth. With over a decade of executive level marketing,

product management and PR experience, Bryta has led

marketing teams in enterprise technology and SaaS companies.

Her experience includes heading product marketing at GoGrid,

PGP, RSA and Symantec and business development and

product management positions at Xcert, Thales, and

Persistence Software. Bryta holds a MA in Translation from the

Johannes Gutenberg University Mainz and an MBA from the

University of Reutlingen.

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It seems as if TV and video content viewers want flexibility in how they watch TV or stream

video. Horowitz Research found 14 percent of multiplatform viewers would create and

choose a package without multichannel service that includes at least one of the following

service: HBO, Showtime or CBS. While cable TV isn’t dead, it’s likely OTT and SVOD

content will continue to disrupt the TV and video viewing market.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.