By Jonathan Easton

Cord-cutters in the US are spending an average US$85 per month on alternatives to pay TV.

According to Parks Associates’ latest report into cord-cutters and cord-nevers, the former group is spending roughly US$30 less per month than what they were paying for traditional pay TV services.

But while there are similarities between the consumption habits of cord-cutters and cord-nevers, the former group spends nearly twice as much monthly on OTT services as the latter.

In total, there are more than six million cord-nevers in the US. Despite consuming content solely via online sources, cord-nevers are also less likely to own key streaming video products such as smart TVs and streaming devices. Some 58 per cent of cord-cutters by contrast own a smart TV.

President, Parks Associates, Elizabeth Parks said: “Cost concerns drove many consumers away from traditional pay TV, and OTT services are delivering on the promise that they can offer desired video content at a considerably lower price point. But we find 47 per cent of cord-cutters subscribe to four or more OTT services, so in order to have an optimal video portfolio, they are creating their own video bundles by stacking OTT services.

“As they migrate away from traditional pay TV, cord-cutters seek service offerings that more closely meet their video content needs with the added value of flexibility at a lower cost,” Parks said. “OTT services have to continually deliver flexibility and customisation at a reasonable cost to keep these subscribers engaged and retain them on an ongoing basis.”