Following OTT and content licensing announcements at NAB and the Aereo, Inc. case before the Supreme Court, Parks Associates (www.parksassociates.com) says that pay-TV penetration remains fairly steady at around 85% of U.S. broadband households but over-the-top (OTT) video use is increasing on multiple devices, particularly with younger viewers.
"Pay-TV subscriptions remain high among Millennials, but at the same time, nearly 40% in this age group consider online video the most important source for video content," says Glenn Hower, research analyst, Parks Associates. "As consumers diversify their viewing resources, the licensing process becomes more complex. Additionally, the Supreme Court case in ABC v. Aereo could drastically reshape the licensing environment for retransmission. A win by Aereo may set legal precedent for a method to rebroadcast without compensation."
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