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Industry Research : Impact of Streaming Video Services on the Future Evolution of Pay TV
CSG Systems International, Inc. (NASDAQ: CSGS), a global partner to launch and monetize digital services, announced survey findings that reveal new trends in consumer use of streaming video services and the impact of streaming on Pay TV services.
In the survey titled Going with the Flow: How to Captivate Video Streamers, The Diffusion Group (TDG), on behalf of CSG, polled nearly 2,000 consumers across the United States who regularly use streaming services to watch video. Survey respondents reported their opinions about watching short- and long-form video content including movies, TV shows, sports and other content across devices and from multiple providers.
Among the most notable findings:
- 80 percent of streamers subscribe to at least one streaming video service in addition to, or instead of, Pay TV service from a cable, satellite or IP-TV provider.
- 79 percent primarily stream video on their television sets.
- Millennial streamers spend more than 50 percent of their TV time watching streaming video rather than traditional television and see decreased value in their Pay TV services because of their streaming choices.
- 72 percent of sports streamers cite sports as their most important streaming service.
- 20 percent of streamers plan to switch, downgrade or disconnect their Pay TV services in the next 6 months.
- 48 percent of respondents would greatly value centralized search, recommendations, billing and discounts across all of their paid subscriptions, regardless of provider.
Streamers report watching more than 26 hours of television each week, with half of this time spent viewing subscription streaming services such as Netflix, Hulu and Amazon Prime. Notably, streaming services with the highest subscription rates offer original content and sports content. To align with these trends, the ability to offer new skinny bundles and innovative OTT-like services will become increasingly important for Pay TV providers.
"Two-thirds of US broadband households use a subscription video service like Netflix," said Michael Greeson, TDG co-founder and director of research. "Forty percent of this segment subscribe to multiple streaming services, making them prime prospects for value-added services that deliver a new level of user engagement and blend multiple services into a single experience."
Survey responses point to a significant interest in a new type of feature bundle, consistent with the recent market trend of incumbent Pay TV providers working to integrate multiple streaming services into their service offering. Consumers expressed interest in a new bundle that offers the ability to search for content across multiple services, use a single recommendation engine, receive multi-service discounts and have unified billing. In fact, 60 percent of streamers see value in having a single bill for all their streaming services.
"Consumers are building and bundling their video experience with multiple providers, opening an opportunity for incumbent Pay TV providers to leverage their growing partner ecosystem to package both traditional and streamed services together to attract the multi-service streamers," said Brian Shepherd, president of broadband, cable and satellite business at CSG International. "CSG believes that Pay TV providers are uniquely positioned to deliver the video bundle of the future, as they already have the network infrastructure, customer preference history, analytic insights and billing relationship to tie everything together in a way that delivers innovative new value to the market."
Posted by Veronica Silva Cusi, news correspondent
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Published: Monday, May 2, 2016