American technology market research firm ABI Research have claimed in a new study that around 20% of consumers in America are of the belief that online video can?serve as?a replacement for their pay-TV networks.
The authors of the report (compiled under the ?Technology Barometer Research Service?)?suggest that the news could be seen as a ?significant risk? to the stature of traditional TV business operations, an industry?reported to have a value of $16.8b in the USA.
ABI?have recognised that on current market trends, the number of??pay-TV households??(covering ?traditional cable, satellite and telco TV? services) will be on the?decline?at an average annual?rate of 0.5% through to 2017.
In the wake of these developments, ABI naturally believe that many of these lost?subscription TV customers will turn to??over-the-top??(OTT) platforms and?online subscription packages (in particular movie streaming sites such as Netflix). It is believed that currently, the opportunity for consumers to get the best of both markets is currently strong, with an estimated 30% of online consumers with?subscription TV having in-place?a ?foundation? for OTT platforms.
A claim from the company for a potential response by subscription platforms?to the suggested future of the market include releasing ?lightweight? services at a lower cost for less content, as ABI?s TV & video ?practice director? Sam Rosen explained: ?While many OTT services focus on movies, the goal of lightweight pay TV packages should be to introduce customers to the brand and tease customers with premium content offerings.?
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Steve Sanger
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Source: http://www.worldtvpc.com/blog/abi-research-suggest-one-fifth-of-customers-ready-for-online-switch/
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