There’s a Subscription for That

by Michael Inouye | 3Q 2016 | IN-4136

Pay TV services continue to hold significant value as evidenced by the continued growth in worldwide subscriptions, but in mature markets where growth is limited the content landscape is starting to shift. While there is still tremendous value in bundled packages, viewers are increasingly finding and watching content outside of these channels. For many, these alternative content sources serve complementary roles to traditional video services, but for others and in particular younger individuals and households that form the bulk of the “cord-nevers,” OTT video streams to the primary screens. At this time there is no evidence to suggest future generations will view traditional pay TV subscriptions any differently, so operators such as AT&T and DISH Network are already exploring ways to forge new relationships with these households. AT&T and The Chernin Group, for instance, will launch video subscription bundles targeted at these younger viewers.

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