You may be surprised to find out that the number of antenna-only households for TV service in the U.S. is growing.

So, too, are Internet streaming subscribers.

Suffering the consequences?

A drop in pay TV subscriptions, says a new report.

Maybe that’s why Mohu, a TV antenna startup in Raleigh, continues to grow.

According to research firm Parks Associates, 15% of U.S. broadband households now have antenna-only TV service.

At the same time, there has been a drop in pay-TV subscriptions as customer dissastisfaction has grown and an increase in Internet-only video subscriptions.

“Pay-TV subscriptions have dropped each year since 2014, falling to 81% of U.S. broadband households in Q3 2016,” said Brett Sappington, Senior Director of Research of Parks Associates. “Several factors have played a part in this decline, including growth in the OTT [over the counter] video market, increasing costs for pay-TV services, and consumer awareness of available online alternatives.”

The report’s highlights include:

  • In 2016, twice as many subscribers downgraded (12%) their pay-TV service than upgraded (6%) it.
  • The likelihood of non-subscribers adopting pay TV has declined since 2012.
  • Only one-half as many Cord Nevers adopted pay TV in 2016 (2%) as in 2015 (4%).
  • The size of the Cord Never segment is slowly increasing.

So what’s next?

“With the continued decline of traditional pay-TV subscriptions, 2017 will be characterized by the rise of online pay-TV services,” Sappington said. “While traditional pay TV provides superior viewing quality, OTT video commonly excels in discovery, portability, and personalized user experiences. Consumers care less about the network used to deliver the content than they do about access to the content, ease of use, and convenience.”

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