PLANO, Texas—Having a live TV bundle option is still important to half of all consumers surveyed in a recent Parks Associates report.
In the research firm’s latest consumer research The New Live TV Model: Skinny Bundles, Sports, News, 27% of US internet households prefer a live-TV bundle combined with their favorite streaming on-demand services, while 24% prefer a skinny bundle combined with their favorite streaming services. In total, 51% prefer a package that combines live TV with their favorite streaming services.
"Consumers are not necessarily choosing between live TV and streaming. Many want access to both in one package," said Michael Goodman, Director, Entertainment Research, Parks Associates. "Providers have the opportunity to offer greater flexibility to their consumers while making it easier to access the content they value."
Parks Associates also noted that 68% of streaming pay-TV subscribers (vMVPD subscribers), including consumers using services such as YouTube TV, Hulu + Live TV, Fubo, and DirecTV Stream, like the idea of a skinny bundle—a pay-TV or streaming channel package that includes a limited number of core channels, typically focused on specific content types (e.g., entertainment, sports, or news). It is priced below traditional all-inclusive TV packages.
The findings show consumers continue to value live television, but their expectations for how it is packaged are changing, according to Parks. Smaller channel packages combined with streaming services can provide a middle ground between traditional pay TV and streaming-only options.
"Skinny bundles offer providers an opportunity to address consumers who want to maintain access to live television but are increasingly sensitive to the cost and size of traditional channel packages," Goodman said. "The strongest opportunity is retention. These packages can give existing subscribers another option before they decide to cancel service entirely."
