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Kagan Releases Multichannel projections through 2021

Multichannel services cede ground to over the top content (OTT), Virtual Service Providers (VSPs) in U.S. video household segmentation outlook


News provided by

S&P Global Market Intelligence

Jun 26, 2017, 09:21 ET

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MONTEREY, Calif., June 26, 2017 /PRNewswire/ -- The increasing loss of traditional multichannel subscribers in the U.S. is further splintering a video landscape in which streamed bundles, online subscription services, self-aggregation and over-the-air delivery are playing more prominent roles, according to findings from Kagan, a group within S&P Global Market Intelligence.

Multichannel cedes ground to OTT, VSPs in US video segmentation – S&P Global Market Intelligence
Multichannel cedes ground to OTT, VSPs in US video segmentation – S&P Global Market Intelligence

"Changing viewing habits point to mounting losses for traditional video services, and challengers are lining up to capitalize," said Ian Olgeirson, Research Director, S&P Global Market Intelligence. "However, the operators are not without significant fortifications enabling expectations for preserving a majority share in the five-year outlook."

The transformation has amplified the conditions for change and instability in the market, according to the latest segmentation of video delivery options among U.S. households. While households with a traditional multichannel subscription are positioned to remain in the solid majority in the five-year outlook, upward momentum lies firmly with alternative services; the combined account for a non-multichannel tally is on pace to exceed one quarter of occupied households in 2017 and peak one third by 2021.

The outlook through 2021 features:

  • Accelerated declines of traditional multichannel subscriptions to 82.3 million, down 10.8 million households over five years.
  • The emergence of virtual services from a niche pioneered by SlingTV and Playstation Vue to a mainstream option that accounts for nearly 11 million households.
  • The growth of households relying solely on over-the-top delivery of self-aggregated online content to reach nearly 18 million or 14% of occupied households.

See more research by Kagan and the Technology, Media and Telecom (TMT) group here.

About S&P Global Market Intelligence

At S&P Global Market Intelligence, we know that not all information is important—some of it is vital. Accurate, deep and insightful. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities globally can gain the intelligence essential to making business and financial decisions with conviction.

S&P Global Market Intelligence a division of S&P Global (NYSE: SPGI), provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spglobal.com/marketintelligence.

SOURCE S&P Global Market Intelligence

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