Subscription-based business models offer a strong value proposition to consumers and recent research by Parks Associates suggests consumers are not only willing to pay for a subscription, they are willing to pay for multiple service subscriptions — even premium-priced services — if value is perceived.
This trend bears out in the shifting pay-TV industry. While the percentage of broadband households subscribing to a pay-TV service is on the decline, the number of OTT service subscriptions continues to rise —with over half of OTT households subscribing to two or more services. The percentage of U.S. households with pay-TV subscriptions dropped from 87% in 2014 to 79% in 2018, while the percentage of households with OTT subscriptions increased from 55% to 64% during the same timeframe.
Source: Parks Associates