OTT adoption is showing the first signs of slowing, and that could be a warning sign for Disney and WarnerMedia


OTT adoption is showing the first signs of slowing, and that may be a warning sign for the newest streaming services set to launch from Disney and AT&T, according to a new note from Cowen analysts.

The findings come from a report, published each quarter in front of earnings, which surveys a statistically comparable portion of the US population to understand consumer behavior.

The survey asked respondents “has your household disconnected Pay TV in the past 6 months?”, and the percentage answering “yes” decreased across all of the large Cable companies — Comcast, Charter, Cox, Cablevision, and Suddenlink — following three consecutive quarters of increases, the analysts wrote. And for the past five months, cord cutting has remained generally flat, the report noted.

A portion of the slowing may be related to seasonal trends, as cord cutting moderates every Q1, the analysts wrote. But overall they believe the slowing stems from price hikes from streaming services. The price of TV service remains the top reason for cord cutting, far above access to exclusive content, the analysts wrote.

In the past several months there have been price hikes at vMVPDs, like DirecTV Now, FuboTV, and YouTube TV, which all increased their