OTT SVOD services remain a complement to – not a replacement for – traditional pay TV, with 40% of Internet users having both multichannel and an OTT SVOD service, according to Horowitz Research.
Findings also show that 42% of users have multichannel only, 11% have an OTT SVOD service only, and 7% have neither.
Among OTT SVOD users, 78% are also multichannel subscribers. But recent OTT developments from traditional pay TV distributors – DISH's Sling TV and DirecTV's Yaveo – could start changing the game.
"For many, streaming video has become an integral part of the viewing lifestyle,” says Adriana Waterston, Horowitz's SVP of Insights and Strategy. “The idea of an Internet TV service, at a lower price point and with more customizable options, is an attractive prospect.”
The study finds that among Internet users overall, 51% have access to an OTT SVOD service (like Netflix, Hulu, or Amazon Prime Instant Video), rising to 75% among millennials.
Millennials are three times as likely to have an OTT SVOD service and no multichannel (21% among millennials, vs. just 7% among 35+) and nearly half (48%) report spending more than 50% of their viewing time streaming.
Furthermore, 55% of millennials who are multichannel subscribers say that if the price were right, they would subscribe to an Internet TV service instead of their current cable or satellite service, compared to 43% of the 35+ demographic.