Nearly Half of Pay-TV Households Now Use Online Video Services, Reveals New Report
In a significant shift within the media landscape, Parks Associates has revealed that nearly half of U.S. pay-TV households now receive their video content through internet-delivered platforms. This finding will be highlighted in their upcoming S.O.S. State of Streaming report during the eighth annual Future of Video: Business of Streaming conference, set to take place from November 18 to 20, 2025. At this gathering, industry leaders will discuss crucial aspects of this transformation, including the implications for providers, consumers, and advertisers alike.
The S.O.S. report, produced in collaboration with notable partners such as Broadpeak, Philo, and Skreens, aims to provide insight into the evolving dynamics of the pay-TV and streaming video markets. Traditional pay-TV solutions still retain a stronghold, serving 42% of U.S. internet households. However, services delivered via the internet are rapidly gaining traction, with virtual multichannel video programming distributors (vMVPDs) capturing 25-30% of the market, while internet service provider-based streaming bundles account for 20%.
Elizabeth Parks, the President and Chief Marketing Officer of Parks Associates, emphasized the changing landscape: "As more consumers access content through apps and connected devices, the set-top box is losing its dominance. Streaming TV apps now account for one in four pay-TV access points."
The Future of Video conference will feature prominent keynote speakers, including executives from Charter, Tubi, Verizon Business, Wurl, FloSports, Canela Media, and Needham Company. The event, sponsored by leading entities such as Broadpeak and Philo, aims to unite market leaders and executives to discuss the effects of aggregation, advertising, bundling, and AI on audience engagement and revenue growth.
During the conference, attendees will receive a copy of the S.O.S. report, which highlights several pivotal trends within the streaming market. Research gathered indicates varying consumer preferences, such as interest in AI-driven content creation—with 53% of U.S. online households expressing attraction towards at least one of these use cases. This figure rises significantly to 70% among households with children, indicating a robust openness to AI-enhanced viewing experiences. Furthermore, the study delves into the competitive landscape of subscription video-on-demand (SVOD) services, with Roku's new offering, "Howdy," launching at a budget-friendly $2.99 per month, showcasing its aim to compete as a low-cost, ad-free addition to current streaming subscriptions.
However, the report also indicates challenges in the realm of free ad-supported streaming TV, which saw usage fall to 45% in Q1 2025. This decline suggests that advertisers must implement more precise targeting strategies and innovative integrations to keep audiences engaged.
Notably, 33% of U.S. internet households subscribe to at least one sports-specific streaming service, with ESPN+ leading the charge with more than 24 million subscribers. Insights from the Future of Video conference are expected to be invaluable for those navigating the complexities of today's rapidly evolving entertainment ecosystem.
Ultimately, Parks Associates’ research affirms that consumer choice is paramount to defining the future landscape of video consumption. Therefore, successful operators must exhibit flexibility in adapting to changing behaviors while fostering trust across the value chain.
The Future of Video not only presents a vital platform for industry leaders to deliberate on emerging trends but also addresses the crucial question of how players within both traditional and internet-based services can thrive amid shifting consumer behaviors. This is the time to realign strategies and innovate solutions that will aid in audience retention and overall success in a competitive marketplace.
The S.O.S. report, produced in collaboration with notable partners such as Broadpeak, Philo, and Skreens, aims to provide insight into the evolving dynamics of the pay-TV and streaming video markets. Traditional pay-TV solutions still retain a stronghold, serving 42% of U.S. internet households. However, services delivered via the internet are rapidly gaining traction, with virtual multichannel video programming distributors (vMVPDs) capturing 25-30% of the market, while internet service provider-based streaming bundles account for 20%.
Elizabeth Parks, the President and Chief Marketing Officer of Parks Associates, emphasized the changing landscape: "As more consumers access content through apps and connected devices, the set-top box is losing its dominance. Streaming TV apps now account for one in four pay-TV access points."
The Future of Video conference will feature prominent keynote speakers, including executives from Charter, Tubi, Verizon Business, Wurl, FloSports, Canela Media, and Needham Company. The event, sponsored by leading entities such as Broadpeak and Philo, aims to unite market leaders and executives to discuss the effects of aggregation, advertising, bundling, and AI on audience engagement and revenue growth.
During the conference, attendees will receive a copy of the S.O.S. report, which highlights several pivotal trends within the streaming market. Research gathered indicates varying consumer preferences, such as interest in AI-driven content creation—with 53% of U.S. online households expressing attraction towards at least one of these use cases. This figure rises significantly to 70% among households with children, indicating a robust openness to AI-enhanced viewing experiences. Furthermore, the study delves into the competitive landscape of subscription video-on-demand (SVOD) services, with Roku's new offering, "Howdy," launching at a budget-friendly $2.99 per month, showcasing its aim to compete as a low-cost, ad-free addition to current streaming subscriptions.
However, the report also indicates challenges in the realm of free ad-supported streaming TV, which saw usage fall to 45% in Q1 2025. This decline suggests that advertisers must implement more precise targeting strategies and innovative integrations to keep audiences engaged.
Notably, 33% of U.S. internet households subscribe to at least one sports-specific streaming service, with ESPN+ leading the charge with more than 24 million subscribers. Insights from the Future of Video conference are expected to be invaluable for those navigating the complexities of today's rapidly evolving entertainment ecosystem.
Ultimately, Parks Associates’ research affirms that consumer choice is paramount to defining the future landscape of video consumption. Therefore, successful operators must exhibit flexibility in adapting to changing behaviors while fostering trust across the value chain.
The Future of Video not only presents a vital platform for industry leaders to deliberate on emerging trends but also addresses the crucial question of how players within both traditional and internet-based services can thrive amid shifting consumer behaviors. This is the time to realign strategies and innovate solutions that will aid in audience retention and overall success in a competitive marketplace.
Topics Entertainment & Media）
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