More than half of Americans who subscribe to a broadband Internet service want a video subscription package that combines live television channels with their favorite streaming apps, according to new consumer data released by Parks Associates on Tuesday.
The firm’s latest report, “The New Live TV Model: Skinny Bundles, Sports, News,” found 27 percent of U.S. Internet households prefer a traditional live-TV bundle paired with their favorite streaming on-demand services. Another 24 percent prefer a skinny bundle combined with their favorite streaming services.
Together, Parks said 51 percent of households prefer some form of package that blends live television with streaming.
“Consumers are not necessarily choosing between live TV and streaming,” Michael Goodman, the Director of Entertainment Research at Parks Associates, said in a statement. “Many want access to both in one package.”
Goodman said providers have an opportunity to offer consumers more flexibility while making it easier to access the programming they value: Sixty-eight percent of vMVPD subscribers, including users of services such as YouTube TV, Hulu with Live TV, Fubo and DIRECTV Stream, find the idea of a skinny bundle appealing, according to Parks data.
Parks defines a skinny bundle as a pay-TV or streaming channel package with a limited number of core channels, typically focused on specific programming categories such as entertainment, sports or news. The packages are generally priced below traditional all-inclusive pay-TV bundles.
The findings suggest consumers still value live television, particularly when it is packaged in ways that feel more flexible and cost-conscious. Smaller channel packages paired with streaming services could give providers a middle ground between traditional pay TV and streaming-only products.
“Skinny bundles offer providers an opportunity to address consumers who want to maintain access to live television but are increasingly sensitive to the cost and size of traditional channel packages,” Goodman said. “The strongest opportunity is retention. These packages can give existing subscribers another option before they decide to cancel service entirely.”
Parks Associates will host a webinar, “Streaming Video: Churn, Loyalty, and Competition,” on September 24. The event will feature research from the skinny bundle study and the firm’s Streaming Video Tracker, which follows more than 400 streaming video services in North America.
The firm will also host its ninth annual Future of Video: Business of Streaming conference November 17-18 in Marina del Rey, California. The Desk is an editorial partner of the event.
