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November 16, 2015
Study: Streaming Penetration ‘On Par’ With Cable
Posted by KMontgomery

Study: Streaming Penetration ‘On Par’ With Cable

OTT Video Continues to Bridge the Gap, Clearleap Finds

Offering another view of the impact being felt by over-the-top video services, a new study from multiscreen video tech company Clearleap found that the penetration of streaming services is “on par” with traditional cable TV.

The study, based on an online survey of 1,111 U.S. consumers 18 or older in July 2015, showed that 78.5% said they subscribed to cable, while 71.37% said they use or once used a streaming service.

Unsurprisingly, of the millennials (ages 18-29) surveyed, 70.32% use a streaming service, versus 64.41% that take cable. Just more than a quarter of them (26.48%) have never taken a pay TV service.

About 42% of consumers who do take a streaming service said said they’d be willing to pay $10 to $25 per month for a service that featured their preferred types of content, a range, on the high end, that exceeds what Netflix, Hulu and Amazon charge combined  for their respective subscription video offerings, Clearleap found.

Current streaming service users are generally happier with the product than cable subscribers. When asked if they had considered canceling their cable subscription, nearly half of respondents who currently subscribe to cable (47.57%) said yes, citing high costs (34.14%), poor customer experience (7.52%), and not having enough time to watch TV (2.55%).

However, just 3.36% indicated that they would cancel their subscription because they had signed up for a streaming service.  “This indicates that consumers don’t view OTT offerings as a direct replacement for cable, although the price point is more attractive.” Clearleap said.

Given the “endless parade of streaming service announcements from incumbents and upstarts alike, OTT is changing the game,” Clearleap noted in the study. “Couple that with declining cable subscriptions and a growing preference for binge-watching, and 2015 will go down in history as a critical year for streaming service adoption.”

The study also looked at streaming services that are resonating with consumers, and found results that mirror subscription levels.  About 83% of those surveyed said they use Netflix, followed by Amazon (38%), Hulu (22%),  HBO Now (7%), CBS All Access  2%, and Sling TV (2%).

Among devices, laptops (58%) were the most popular platform used to receive a streaming service, followed by smartphones (39%), smart TVs and tablets (29% each), Xbox consoles (22%), desktops (22%), PlayStation consoles (17%), Roku players (12%), Chromecast adapters (11%), Apple TV devices (10%), and Amazon Fire TV devices (3%).

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