Parks Associates today released their Online Video and Broadband Provider Strategies study. The report states that the number of U.S. broadband households watching premium online content doubled in the last year, with over 25 million U.S. broadband households regularly watching full-length TV shows online, and over 20 million watching movies online.
“Connected CE devices are affecting the competitive ecosystem of the television industry, and while the current number of cord cutters isn’t substantial, service providers are concerned about these developments,” said Jayant Dasari, research analyst, Parks Associates. “Pay-TV providers are working to head off a possible shift that might devalue their services by offering TV Everywhere. These services supplement their traditional offerings, which might not dissuade anyone determined to cut the cord, but providers could use them as models for future business strategies.”
The report also says that consumers feel no strong preference for sites like Hulu or broadband service providers, giving the latter an opening to better establish themselves. Regardless, brand marketers should be aware that more and more people are watching online instead of on traditional TV, and should plan marketing spends accordingly.
