DirecTV and Hulu take note: Sweet spot for OTT services is under $30, analyst’s survey says

multiscreen content

With a number of pay-TV operators and technology companies poised to launch over-the-top live-streaming services, MoffettNathanson has released a compelling survey, proving the analyst firm’s belief that these services are wise to keep their price points below $30 a month.

Partnering with Savata, and interviewing 513 consumers online, MoffettNathanson found that 61 percent of respondents would expect to pay under $30 a month for an OTT package that doesn’t include regional sports networks. In fact, 23 percent expect that package to be priced at between $10 to $20. 

For a live-streaming service with regional sports networks, meanwhile, only 43 percent of respondents would expect to pay $40 or more.

Sponsored by Google Cloud

Webinar: Remote Post Production In The Cloud

Video production companies across the world have traditionally been tethered to physical facilities, but with the advent of covid-19, remote post production capabilities are more important than ever. Join this webinar to learn more about how video producers can utilize Google Cloud infrastructure, along with partner applications, to develop a remote post production suite that brings your artists and editors together, no matter where they are.

This data is somewhat in conflict with pricing rumors for Hulu — early speculation has the company’s live streaming service priced at around $40 a month. 

“Our survey highlights a number of the many challenges facing a serve like Hulu,” analyst Craig Moffett said. “Whether such a service is economically feasible at $40 is debatable. Beyond $50, the demand falls sharply. The majority would expect a service like Hulu’s proposed pay-TV replacement service to cost $30 or less (and some unrealistically expect it to cost less than $10).”

Also alarming: Only 18 percent of respondents who don’t currently have pay-TV are interested in acquiring an OTT service, the survey found. The number was similar for respondents who have pay-TV — 16 percent. 

For more:
- read this MoffetNathanson report (sub. req.)

Related articles:
DirecTV’s new multiscreen app a good harbinger for live-streaming service, analyst says
AT&T begins zero rating program for DirecTV multiscreen apps


Suggested Articles

Synamedia is introducing Iris, a new addressable advertising solution aimed at pay TV operators and broadcasters along with OTT and hybrid providers.

Locast, a free streaming app for local broadcast television, has added Minneapolis and St. Paul to the list of cities that can access its service.

Disney’s stake in fuboTV hits the books not long after the company reached a distribution deal with fuboTV.