The advancements in technology have transformed the way people used to live. For instance, back in the day, people could not imagine living without the Pay-TV industry. And today, they are ditching it! They are getting rid of it at such a rapid pace that Parks Associates have shared that from 2014 to 2020, over 18 million people unsubscribed from the service.
But why? Well, OTT services like Netflix, Amazon Prime Video, Disney +, and Hulu is the reason for this decline.
However, some cable providers are trying to change things by introducing affordable deals and more features in their service plans like the Cox communications customer service.
The Landscape Is Changing – US Pay-TV Industry
Traditional pay-TV is not as popular today as it once was. You will be surprised to know that more than seven million households got themselves free from the service.
Also, it is interesting to know that the broadband market is booming. This can be because more and more people want to be connected to the internet.
This sudden boost has enabled broadband players to expand their business even more. At the same time, a spike in market competition has also been observed.
The Rise of Virtual MVPDs & OTTs
The virtual MVPDs & OTT services have exploded in popularity. And many people are now using them. It is important to note here that vMVPDs are a part of Pay-TV.
According to the senior analyst of Parks Associate Kristen Hanich, the market for Virtual MVPDs grew by approximately 3 million. They are now representing a large percentage of the pay-TV market.
During the pandemic, the virtual MVPDs are the only segment of Pay-TV that experienced immense growth.
Considering this, Parks Associates predicted that the pay-TV subscribers will reduce to 53 million in the United States. On the contrary, the vMVPDs are expected to grow even more.
Providers Looking for Alternatives
Judging by the fact that people are quickly losing their interest in Pay-TV, providers are now actively looking for alternatives.
After all, this is important for their survival. Cable companies will have to change with time and adopt the latest trends if they want to thrive.
One company called Cablecos took the initiative to introduce something new to the public and found success.
They launched the WiFi-first MVNO services which operate on Verizon’s network. A few of the big names like Altice, Spectrum, and Xfinity also entered the MVNO space and are now considered big players.
Internet Providers Will Continue to Find Success
The internet has become more of a necessity these days. Everyone wants access to a fast internet connection. And the ISPs are aware of this fact.
Therefore, they always try to satisfy their needs the best they can. The broadband market is indestructible.
And it will continue to expand. You will be surprised to know that the internet providers within the United States collectively have more than 110 million small business and residential internet subscriptions.
According to Hanich, the broadband market is destined to grow more. This will increase more pressure on the cable providers who will have to do everything to find the perfect combination of services that can easily leverage the massive customer base.
Conclusion to US Pay-TV Industry
Streaming services have picked up a lot of traction in recent times. People are now relying on these services for their entertainment needs. And this is a big problem for the cable providers. Why? Well, simply because people are no longer interested in Pay-TV.
And as a result, this Pay-TV industry has taken a huge hit. People are unsubscribing themselves from the service almost every day.
And according to the Parks Associates’ study, the situation is bound to get worse unless providers can figure out a way to offer the right set of services.