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The 21st century shift from legacy media to digital platforms doesn’t mean there isn’t a place for traditional TV in the contemporary viewing landscape.

That’s according to Tess Erickson, director of strategy and research at Broadbeam Media, who oversaw the New York- and Boston-based firm’s recently published What’s on “TV” OTT study. “The increased usage of vMVPDs like YouTubeTV and Hulu+Live TV has been a bright spot, even if not showing up in all TV ratings,” she tells Spots N Dots. “This increase means that while not going through traditional providers, viewers are still looking for the traditional TV experience. Nearly 60% of those who cut the cord in the last year said they were using a vMVPD — showing that many who have held out on cutting the cord until recently did so because they didn’t want to lose linear TV access.”

The research found that the biggest differences between those with still pay for cable TV and those who don’t are age and income. Many Americans, Erickson explains, have been priced out of cable. “If they’re used to getting their entertainment from digital sources — like the Millennials and the upcoming Gen Z — paying for a full cable package on top of internet and the services they’re more likely to depend on, like Netflix or Hulu, no longer makes sense financially.”

Broadbeam’s OTT study finds Netflix (75%) has the greatest penetration, followed by Amazon Prime (59%) and Hulu (47%). At the bottom were PLEX (5%) and XUMO (4%).

Among other findings:

  • SVODs now have more reach than traditional TV.
  • Only 10% of Hulu viewers aren’t reachable through ads, either on Hulu’s Live TV service or VOD with ads.
  • Peacock (28%) has more reach, but The Roku Channel has a larger audience reachable through ads (23% vs. 21%).
  • Respondents estimated they spend an average of $48.60 per month on streaming services. The calculated spend equates to an average of $65.50 per month.
  • Forty-eight percent of those who watch sports still turn to broadcast or cable.

View the original article published in SpotsNDots

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