Study: OTT Complements Pay TV, Not Replaces

NEW ROCHELLE: A new report from Horowitz Research shows that OTT SVOD services are a complement to, not a replacement for, traditional pay TV.

The Multiplatform Content & Services report finds that 40 percent of internet users have both multichannel and OTT SVOD services, 42 percent have multichannel only, 11 percent have an OTT SVOD service only and 7 percent have neither. Among OTT SVOD users, 78 percent are also multichannel subscribers.

Adriana Waterston, Horowitz's senior VP of insights and strategy, said: "For many, streaming video has become an integral part of the viewing lifestyle. The idea of an internet TV service, at a lower price point and with more customizable options, is an attractive prospect."

Horowitz Research also finds that among internet users overall, 51 percent have access to an OTT SVOD service, rising to 75 percent among Millennials. Millennials are, in fact, three times as likely to have an OTT SVOD service and no multichannel (21 percent among Millennials compared to just 7 percent among those 35-plus) and nearly half (48 percent) report spending more than 50 percent of their viewing time streaming.

"For Millennials, streaming is as natural as turning on the TV set, so an OTT service direct from a distributor could be a natural fit," added Waterston. "No longer tied to their physical infrastructure, OTT offerings have the potential to offer huge opportunity for distributors to reach beyond their footprint, shaking up the entire pay-TV model."