Parks Associates: Consumers are far More Likely to Recommend Online Pay-TV than Traditional Pay-TV Services

Parks Associates study shows positive NPS for online pay TV, negative for traditional pay-TV providers

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Nov 28, 2018, 07:59 ET

DALLAS, Nov. 28, 2018 /PRNewswire/ -- New U.S. consumer data from Parks Associates finds the average NPS (net promoter score) for traditional pay-TV providers in 3Q 2018 is -19. 360 Deep Dive: Churn and Retention in Pay TV notes this NPS represent a slight drop for pay-TV providers, which scored -15 in 1Q 2018, although some providers such as Optimum and DISH improved their individual scores. By comparison, the average NPS for the major online pay-TV and OTT video services is positive, although their overall scores declined from 2017 to 2018. Net promoter score measures willingness to recommend a service and is widely used to assess consumer perception of services and providers.

Parks Associates: Factors Influencing Decision to Make a Pay-TV Change

"The percentage of U.S. broadband households that do not subscribe to traditional pay TV increased from 16% in 2011 to 22% in 2017," said Brett Sappington, Senior Director of Research, Parks Associates. "With each quarterly earnings report, pay-TV providers and their stakeholders are hyperaware of variances in subscriber figures, and they are trying to reverse this trend with their own brands of OTT services as well as other value-added services. A positive NPS score for these services suggests a positive perception and strong word-of-mouth activity."

360 Deep Dive: Churn and Retention in Pay TV examines the current state of churn among pay-TV providers, with a specific look at cord cutting, cord nevers, the impact of new OTT video services and skinny bundles, triggers to churn, and effective retention tools.

Parks Associates will present consumer research on the video industry at the upcoming Future of Video: OTT, Pay TV, and Digital Media conference, December 10-12, in Marina del Rey, California. The event features keynotes from 20^th Century Fox, AT&T, and Hulu and the pre-conference workshop "OTT Market Disruption & Capturing Audiences." Registration is available here, and press passes for the event are available at https://www.parksassociates.com/events/future-of-video/media.

"A key challenge for pay-TV providers is to design and launch services that will inspire loyalty among younger households," Sappington said. "Older consumers profess higher loyalty to pay-TV providers, whereas younger households are more likely to have an OTT service."

Additional research includes:

79% of U.S. broadband households reported having traditional pay-TV subscriptions in early 2018.
Approximately one third of pay-TV subscribers made a change to their service between 1Q 2017 and 1Q 2018.

For more information about 360 Deep Dive: Churn and Retention in Pay TV, contact [email protected]. To schedule an interview with an analyst or to request specific research data, please contact Julia Homier at [email protected], 972-996-0202.

About Parks Associates

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit: Engaging Consumers, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

Contact:
Julia Homier
Parks Associates
972.996.0214
[email protected]

SOURCE Parks Associates