145 million people in Western Europe regularly watch online video
Parks Associates reports the number of consumers in Western Europe who regularly watch online video will reach 145 million this year and the number of pay-TV operators offering multiscreen TV services will increase from approximately 50 in 2012 to 90 by 2016.
“Rapid growth of connected CE devices in the home, concerns over cord cutting, moves to adopt multiscreen by competitors, and the emergence of TV Everywhere services in North America initially drove implementation of multiscreen services in Europe,” said Brett Sappington, director, research, Parks Associates. “These services allow pay-TV providers to compete with terrestrial broadcasters for online video viewers and potentially to drive subscribers to premium services. The cord-cutting phenomenon was not as apparent in Europe as it was in North America but only because pay-TV providers were already grappling with the challenge of moving subscribers to premium service tiers.”
In Europe, content provider HBO Nordic is testing new offerings to provide OTT services to consumers without a subscription to cable services, raising fears that viewers will use these services to bypass pay-TV offerings. However, a new study from Parks Associates finds 7% of US pay-TV subscribers recently returned to pay-TV service after having “cut the cord,” casting doubt on the long-term impact of subscribers who cancel their pay-TV service because of internet video.
“Economic factors rather than a switch to internet video are the chief driver of churn and the reason people return to pay-TV services,” said Stuart Sikes, president, Parks Associates. “Operators should leverage the popularity of online video, provided their services are properly designed and marketed to match the demands of each individual market.”