20% of consumers consider online as Pay TV replacement

Nearly 20% of online consumers consider online video as a replacement for Pay TV, according to a new ABI Research Technology Barometer study. This represents a significant risk to the traditional TV operator business – as much as $16.8bn in the US.

With the US Pay TV household penetration set to decline approximately 0.5% per year through 2017, ABI Research believes this slow migration will continue even with an economic recovery as consumers have additional entertainment choices like improved online and Over The Top (OTT) video experiences.

“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,” says Sam Rosen, practice director, TV and video.

The report also says that 30% of online consumers that have Pay TV and the foundation in place for OTT services don’t yet see the value of online video.

Further information can be found over at BusinessWire.