Streaming video use is close to matching consumption of pay-TV services in U.S. homes, the latest survey from multiscreen services provider Clearleap found.
The company reported that just over 71 percent of respondents indicated use of video streaming. That compares to around 79 percent market infiltration for pay-TV services. The survey was conducted in July with 1,111 consumers aged 18 or older.
Not surprisingly, 70.3 percent of millennial-aged consumers surveyed indicated use of over-the-top video, compared to only 64.4 percent who said they had a pay-TV subscription. Just over a quarter of this group (26.4 percent) said they've never subscribed to pay-TV.
Notably, when these young-adult consumers were asked what they were willing to pay for a streaming service that features three preferred genres of video content, nearly 43 percent of respondents indicated they would shell out between $10 to $25.
This, of course, is useful information to the growing number of pay-TV operators who are testing IP-based video services. Charter, Time Warner Cable, Comcast and Cox are among those MSOs that have been testing the streaming video waters with various types of services. However, Dish Network's Sling TV remains the most visible streaming service from established pay-TV operators.
In terms of streaming services, 83.6 percent of respondents to Clearleap's survey said they use Netflix, compared to just 38.2 percent for Amazon Prime and 22.4 percent for Hulu.
Despite declarations by cable companies of vast improvements in the overall user experience of their video products, Clearleap found that nearly 48 percent of pay-TV subscribers have considered canceling their service. Over 34 percent of that group cited the cost as the key reason, while nearly 8 percent cited poor customer service.
- read this Clearleap study
Clearleap survey: Sports is not the lynchpin keeping the pay-TV bundle together after all
Clearleap to embed IRIS.TV API into OTT platforms
A+E Networks taps Clearleap to support set-top VOD