TDG: Roku users less likely to subscribe to pay TV services

Roku users are less likely than other TV streamers to subscribe to legacy pay TV services, according to The Diffusion Group (TDG).

The US-based research firm found that 35% of Roku users do not subscribe to legacy pay TV – compared to 27% of adult broadband users in general whom enjoy streaming TV.

TDG forecasts that by 2020 streaming sticks will near 45% penetration among US broadband households.

“Should Roku remain the dominant brand, and continue to expand its vast OTT content ecosystem, legacy pay TV will suffer,” predicted TDG president Michael Greeson.

“Given its substantial footprint and brand strength, Roku devices are becoming a favourite of those living without legacy pay TV. 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.”