A new study suggests that consumers aren't quite as into live TV streaming as many companies seem to think they are. According to a new study by Market Strategies International, trying to build streaming services that mirror traditional live, traditional cable offerings isn't really what consumers want. The study claims that just 11% of all streamers pay for live streaming television, despite a rise in such offerings like DirecTV Now, Sling TV, and YouTube TV. Time-shifted on demand content remains the most popular option by far, notes the report.
The survey found that streaming overall remains hugely popular, with 73% of the population using some type of streaming service, and 29% having downgraded or canceled their traditional TV services.
“While Netflix has the highest use rate and share of wallet by a long shot and is the provider to beat--there is not a clear winner yet," states company VP Greg Mishkin. "None of the current providers has cracked the code on what consumers want. However, the research clearly shows that the strength of the leaders is due to their ability to break free from the old rules of TV."
That hasn't been easy for a cable and broadcast industry that seems to believe it can milk the aging traditional TV cash cow indefinitely in the form of bloated channel bundles and endless rate hikes. And while some companies (notably Dish and Sling, and AT&T with DirecTV Now) have taken risks and offered cheaper, more flexible alternatives, even these offerings tend to try and mimic the structure of traditional television.
"TV providers are failing to recognize that the habits and needs of the viewer have dramatically changed, and the old rules of television no longer apply," Mishkin added. "TV providers must evaluate and revise the business model to fit the needs of the consumer, because if they don’t they are setting themselves up to fail."