SAN FRANCISCO: More and more Americans are turning to OTT platforms and a majority no longer expect cable or satellite TV to be widely used in five years' time, a new survey has said.
Zogby Analytics polled more than 2,100 people for CALinnovates, a body that advocates for the future of California's tech sector, and found that "cord cutter" platform adoption is already widespread.
Specifically, 44% of consumers are already accessing movies and television via these platforms. That includes 57% of consumers between the ages of 18-29, and 63% of parents with a child under 17.
Further, only 42.5% of respondents believed that cable or satellite TV service would continue to remain in wide use by 2020.
Unsurprisingly, it is younger consumers who are driving this trend. Just 37% of consumers between the ages of 18-24 planned to continue to subscribe to a cable or satellite TV service.
"It's no longer accurate to simply say that streaming video is the future of entertainment, because the future is now," said Mike Montgomery, CALinnovates executive director.
His comments came in the wake of several recent reports highlighting the growth of the OTT market.
FBR Capital Markets, for example, predicted that by 2016 Netflix would have more viewers than any of the three major US broadcast networks.
And in Prospects for Premium OTT in the USA, analyst firm MTM forecast that OTT revenue would at least double between 2014 and 2018 but could triple, depending on the success of new entrants and the propensity of consumers to take multiple services.
It expected that pay-TV and OTT would converge, with pay-TV providers developing OTT offerings as entry-level packages or to target specialist audiences; OTT services, on the other hand, would be looking for distribution on affiliate networks
Data sourced from PR Newswire, Variety, Ooyala; additional content by Warc staff