TNS Survey: Video Streaming Rising, Pay TV Still Dominant

NEW YORK: According to market researcher TNS, the number of U.S. homes that are streaming video content is on the rise, though most also still subscribe to a traditional pay-TV service.

The study, which surveyed the telecommunications behavior of more than 20,000 U.S. households, found that 34 percent of homes have streamed video within the previous month. The majority of these streaming households also have a subscription video service—cable, satellite or fiber TV. Twenty-six percent watch both pay TV and streaming, compared to 8 percent that watch streaming alone.

Of the respondents, 55 percent just use pay TV, though it is becoming less common. “The allure of streaming technology is furthering the fragmentation of the consumer video market, resulting in weaker brand affiliations, reduced customer loyalties and higher defection risks across all video distributors,” said Frank Perazzini, the VP of TNS. “Given the emerging challenges from alternative channels, the sustainability of traditional pay-TV service could be vulnerable if new pricing models offer consumers access to the content they desire at lower rates than are available today.”