OTT Typically Complements, Not Replaces, Pay TV, Horowitz Study Says

Few over-the-top viewers are using OTT to replace cable, though more pay-TV providers getting into OTT "could start changing the game," Horowitz Research said Tuesday in a report. The report and survey data indicates OTT streaming VOD typically complements traditional pay TV, as 40 percent of Internet users have both multichannel and an OTT subscription VOD service, while only 11 percent have OTT SVOD only and 42 percent have multichannel only. Nearly 80 percent of OTT SVOD users also are multichannel subscribers, Horowitz said. That could be changing, as millennials are far more likely to have just an OTT SVOD service -- 21 percent of them vs. 7 percent among people 35 and up, it said. Fifty-five percent of millennials who are multichannel subscribers say pricing could get them to subscribe to an Internet TV service instead of their current cable or satellite service, vs. 43 percent of people ages 35 and up, Horowitz said. The survey was done online in May among 1,568 broadband Internet users.