Pay TV Companies Are Losing Ground to OTA

Pay TV Companies Are Losing Ground to OTA

The latest Parks Associates study is out, and it has more bad news for traditional pay TV companies. Once again, satellite and cable companies are seeing losses. And it’s not just streaming services that pay TV companies need to look out for.

That’s because users of free over-the-air TV are on the rise, too. According to Parks Associates’ findings, a full 15% of all U.S. broadband households now get their TV exclusively from an antenna. That’s a big deal, because broadband households are a really important base for pay TV companies.

Over-the-air broadcasts have long been a staple in some rural areas, but the cord cutting revolution has brought antennas to the attention of new demographics. Modern antenna users can even DVR their OTA content with products like the Tablo and other OTA DVRs, and Mohu is planning a new wireless antenna that will further integrate OTA into streaming set-top boxes like the Roku.

OTA’s advantage is that, like traditional pay TV companies, it delivers live TV – but, very much unlike traditional pay TV companies, it does so without charging customers. OTA is a great way to get sports (like the NFL) and local news, areas where streaming services still have some catching-up to do.

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About the Author

Stephen Lovely
Stephen Lovely

Stephen Lovely is a freelance writer and a longtime cord cutter with a passion for technology and entertainment. You can find his work on Cordcutting.com and his tweets at @stephenlovely.

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