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Original Content behind OTT Platforms’ Rise, Pay TV’s Fall

Original Content behind OTT Platforms' Rise, Pay TV's Fall

There appears to be no end in sight for cord-cutting, even with traditional pay TV companies’ move to collaborate with their over-the-top (OTT) competitors to keep their customers.

Based on the latest statistics released by eMarketer, the population of cord-cutters, or viewers who have terminated their pay TV subscriptions and have carried on without it, would surge to 32.8 percent this year.

That figure is tantamount to 33 million subscribers lost by these pay TV companies. These numbers demonstrate a higher figure than the growth rate of 22 percent or 27.1 million cord-cutters predicted in July last year.

eMarketer senior forecasting analyst, Christopher Bendtsen, explained that most of the leading traditional TV companies like Dish, Charter, and Comcast now have found the means to integrate with the streaming behemoth, Netflix.

He explained that these collaborations are still in the infancy stage. Hence, no important shifts in the trend can be expected soon.

Nevertheless, Bendtsen affirmed that as more OTT and pay TV partnerships are forged, together with other strategies, subscriber and revenue losses of pay TV providers will eventually decelerate. He noted, however, that the downtrend will not completely stop.

Revenues and subscribers of streaming platforms are rising progressively to the detriment of pay TV providers. eMarketer has, in fact, raised its future viewership forecast for Netflix, Hulu, YouTube, and Amazon.

eMarketer principal analyst, Paul Verna, revealed that the primary reason for the growth of video-on-demand (VOD) streaming platforms is their original content.

Today’s VOD consumers increasingly opt for services with strong programming. This fuels OTT firms to prioritize premium content creation, pouring in billion-dollar investments in this endeavor alone.

The second major factor accelerating cord-cutting is the availability of affordable and engaging live TV packages. Without the need for installation hardware and fees, these are delivered through the Internet.

American subscribers who avail pay TV services through satellite, telecommunications firms, or cable are estimated to be 186.7 million this year.

This figure marks a drop of 3.8 percent over 2017. Based on the report, the largest decline would be incurred by satellite providers followed by telcos.

Adam Alderson
the authorAdam Alderson
Adam is an aspiring writer and an artist who plays with his band on the weekends. He loves to write about cord cutting and digital industry focused articles. His favorite movie is "Home Alone". He loves watching his home team Birmingham City FC play while listening to House Music. Favorite Teams - Basketball: Spurts, Football: NY Jets, Soccer: Birmingham City FC.

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