Pay TV: shifting consumer behaviour is spurring competition and service innovation

Pay-TV markets are undergoing significant transformation, driven by shifting consumer behaviour and advancements in enabling technologies. Against this backdrop, understanding the evolution of consumer behaviour is key for companies looking to formulate or adjust their commercial strategies and plans for video services.

Drawing upon our consumer survey covering eight major countries worldwide (China, France, Germany, Italy, Japan, South Korea, the UK and the US) we uncover some of the consumer trends shaping the pay-TV market. For example, one key trend is the rise of cord cutting, with 48% of leavers citing cost of the service as the top reason. Another important development is that the share of subscribers to online TV services who hold three or more services has reached 40%, suggesting that growth may slow down in the future. Additionally, 46% of mobile subscribers already have or are interested in adding video streaming services to their mobile subscriptions, representing an opportunity for bundling.

We also present several case studies of operators innovating their TV propositions.