What you need to know
The pay TV and bundled communications industry in the US is in the midst of dynamic changes due to fundamental shifts in consumer entertainment behaviors. In addition to pay TV, household entertainment can include gaming, internet browsing and video streaming services. As such, consumer priorities have shifted toward high-quality internet as opposed to attractive TV channel packages.
Consumers are increasingly cutting pay TV, but will still be heavily reliant on a high-quality internet connection. ISPs as well as mobile network providers are attempting to address shifting consumer needs by expanding their services to offer both home and mobile data connections to offset consumers transitioning to digital-based entertainment.
Live TV services will continue to play a significant role in household entertainment; however, it will face increasing competition from an expanding variety of devices and entertainment options.
Definition
For the purposes of this Report, Mintel includes the following in its definition of pay TV:
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MVPD (multichannel video programming distributor), including cable television subscription services, direct broadcast satellite television subscription services and telephone company fiber/IP (internet protocol) multichannel video programming
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OTT (over-the-top) or streaming subscription services delivering TV network service via the internet (such as Sling TV and DIRECTV NOW) and those delivering on-demand content (such as Netflix and Hulu)
Services that combine video content with other types of services (such as Amazon Prime) are not included in market size estimates, although they are discussed in this Report where relevant.
Bundled communication services refers to home internet and landline telephone connections, often bundled together with pay TV; home security and mobile phone plans are also offered as a bundle by some service providers.
This Report builds on Mintel’s Pay TV – US, November 2018 Report, Content Consumption: TV and Movies – US, October 2017 Report and the August 2016 Report of the same title.
