October 23, 2018

Roku Users Less Likely than Other TV Streamers to Subscribe to Legacy Pay-TV

Legacy Pay-TV Uptake Varies by Streaming Device Brand, Roku Users of Particular Significance

October 23, 2018 (Plano, TX)

It is a fact that the use of dedicated streaming devices is correlated with lower uptake of traditional pay-TV services. However, new research from The Diffusion Group finds that one brand is particularly detrimental to legacy interests: Roku.

In its ninth iteration of Benchmarking the Connected Consumer, TDG found that 35% of Roku users do not subscribe to a legacy pay-TV service, notably greater than the 27% of adult broadband users in general, most of which enjoy streaming TV.

“Given its substantial footprint and brand strength, Roku devices are becoming a favorite of those living without legacy pay-TV,” notes Michael Greeson, TDG President. “The assortment of free and fee-based video apps in the Roku portal is undoubtedly a reason why we observe these correlations. For many TV streamers, buying a Roku, and getting access to the Roku video ecosystem, is no longer just an easy way to supplement their legacy pay-TV service, but a means of replacing it.”

By 2020, TDG forecasts that streaming sticks will near 45% penetration among US broadband households, with iSTBs close behind. “Should Roku remain the dominant brand, and continue to expand its vast OTT content ecosystem,” says Greeson, “legacy pay-TV will suffer.”

This new research is featured in TDG’s annual Benchmarking the Connected Consumer, which details the ownership, placement, connectivity, and use of media-centric consumer electronic devices in the broadband home. For more information about this project, please contact Laura Allen Phillips at 469-287-8060 or by email at lap@tdgresearch.com.

Press Contact:
Wendy Stockard

About TDG Research
TDG provides actionable intelligence on the quantum shifts impacting consumer technology and media behavior. Since 2004, we’ve helped leading and emerging technology vendors, media companies, and service providers master the digital transformation and decipher how modern viewers access and engage video-whenever and wherever they may be. Learn more about how we can help improve your digital video strategies.

Sign Up for Weekly Analyst Insights

Recent Insights