51% of U.S. internet households prefer hybrid live TV and streaming packages

According to recent research by Parks Associates, a significant portion of U.S. consumers now prefer video subscription packages that combine live TV with their favorite streaming services. The findings reveal that 51% of U.S. internet households would opt for such a hybrid model, driven by a growing demand for content aggregation across traditional and streaming video platforms.

"Consumers are increasingly seeking access to both live TV and streaming services within a single package," stated Michael Goodman, Director of Entertainment Research at Parks Associates. "This indicates a shift in consumer behavior, as they are not necessarily choosing between these two options but want to enjoy the benefits of both."

The study, titled "The New Live TV Model: Skinny Bundles, Sports, News," also highlights that 68% of streaming pay-TV subscribers, including those using services like YouTube TV, Hulu + Live TV, Fubo, and DIRECTV Stream, find the idea of a "skinny bundle" appealing. A skinny bundle typically includes a limited number of core channels, often focused on specific content types such as entertainment, sports, or news, and is priced below traditional all-inclusive TV packages.

"These hybrid models can serve as a middle ground between traditional pay-TV and streaming-only options, providing greater flexibility and cost savings to consumers," Goodman explained. "They also 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."

The research suggests that while consumers still value live television, their expectations for how it is packaged are evolving. Smaller channel packages combined with streaming services can provide a more flexible and cost-effective solution for many viewers. Additionally, such hybrid models present a strong opportunity for retention, allowing providers to offer alternatives to existing subscribers before they decide to cancel their services entirely.

Parks Associates will host a webinar on September 24, titled "Streaming Video: Churn, Loyalty, and Competition," which will feature research from this study and the firm's ongoing Streaming Video Tracker, which monitors over 400 streaming video services in North America. The webinar aims to explore various aspects of the evolving video landscape, including hybrid models, monetization strategies, and platform expansion.

The findings from this research underscore the changing dynamics in the video content market, highlighting the growing preference for hybrid models that combine live TV with streaming services. As consumers seek more flexible and cost-effective options, providers are increasingly being pressured to adapt their offerings to meet these changing preferences.