Parks Associates' latest update of the firm's Streaming Video Tracker reveals that just 5% of US internet households have only a pay-TV service, indicating legacy pay-TV companies continue to lose subscribers to streaming video services. However, the average annualized industry churn rate for streaming services is 50%, meaning many streaming services are also struggling to keep their customers.
Parks Associates will discuss its latest streaming and connected home research, and the implications for the markets for connected devices and CE, at CONNECTIONS™ Summit at CES, January 9 in Las Vegas. The firm's Streaming Video Tracker features monthly updates that analyze the strategies among streaming services and broadband and pay-TV providers to engage customers. Each update also examines the latest changes to streaming platforms, business models, and services.
"Sixty-five percent of internet households have a smart TV," said Eric Sorensen, Director, Streaming Video Tracker, Parks Associates. "This platform interface serves as the entry point for many households to their content services. Competition for attention is extreme, while the continued rollout of the ATSC 3.0 standard gives viewers even more options, so in 2024, we will see increased consolidation, mergers, and acquisitions as all providers must find ways to innovate alongside the greater emphasis on profitability."
Traditional telcos are exploring new ways to get their products in front of streaming consumers with services such as Cox's Neighborhood TV. Cox is positioning this hyperlocal streaming service to expand its influences in its communities and as a gateway to attract consumers to its phone, internet, and TV bundle. Station groups such as Sinclair and Hearst have also launched local streaming services to leverage the consumer desire for local content in this age of streaming.
"The hyperlocal approach clearly attracts interest from consumers," Sorensen said. "With the increase of AVOD business models, consumer adoption indicates that relevance is a key factor, namely consumers are likely to turn off services if the service and messaging are repetitive and irrelevant to them. Even manufacturers recognize the need for personalization—for example, LG will be displaying its MyView smart monitors at CES 2024, which the company designed to deliver a personalized experience to the user."
The research firm will host the 18th annual CONNECTIONS™ Summit: Performance and Profits: Smart Home Strategies at CES on January 9, 2024, at the Venetian, Level 4, Marcello 4404, from 9:00 AM- 5:00 PM in Las Vegas. CONNECTIONS™ Summit features six executive sessions and a fireside chat on "Smart Home Innovations" with Mark Benson, Head of Samsung SmartThings U.S., Samsung SmartThings. CONNECTIONS™ Summit concludes with a networking reception sponsored by Cox Communities.
Parks Associates' Streaming Video Tracker keeps companies abreast of 400+ North American OTT services, providing details on current players, new entrants, and trends in the streaming video services market. Services tracked include subscription, transactional, and ad-supported services that deliver professionally created content to consumers on internet-connected devices.
About Parks Associates
Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households. https://www.parksassociates.com
