Study Shows Pay TV Customers Enjoy Streaming Services More

A new study from J.D. Power shows a common link among the happiest streaming video consumers: The majority subscribe to a traditional pay TV service.

Interestingly, satisfaction among streaming services is lowest among cord cutters, and among those who have never subscribed to a traditional pay TV service.

According to the study, 60 percent of streaming video customers purchase pay TV services. Twenty-three percent have slimmed down their cable packages. As for the remaining group, 13 percent are cord cutters. Four percent have never subscribed to pay TV.

The study is encouraging for cable operators, as it proves that consumers still see a great deal of value in pay TV offerings. And it confirms what we have been saying right, along with the fact that streaming content and pay TV can coexist together. Streaming content will not necessarily be the death of cable, like many industry analysts have predicted.

Part of the reason why they go so well together is that pay TV eases streaming video glut. Without a cable plan, consumers are forced to compensate for the lack of channels. So, they tend to invest in multiple standalone services. These services are all siloed from one another, which is inconvenient. Plus, this plan is expensive. Investing in multiple services can cost almost as much, if not more, than a regular monthly cable package.

When used in conjunction with a pay TV service, however, streaming video can work as it is meant to: as a complimentary service to enhance the viewing experience.