Survey Reveals Impact of Streaming Video Services on the Future Evolution of Pay TV

Consumers Show Interest in ‘One Stop Shop’ for all Video Services

ENGLEWOOD, Colo.–(BUSINESS WIRE)–#INTX2016CSG
Systems International, Inc.
(NASDAQ:
CSGS
), the trusted global partner to launch and monetize digital
services,
today announced survey findings that reveal new trends in
consumer use of streaming video services and the impact of streaming on
Pay TV services.

In the survey titled Going
with the Flow: How to Captivate Video Streamers
, The
Diffusion Group (TDG), on behalf of CSG, polled nearly 2,000 consumers
across the United States who regularly use streaming services to watch
video. Survey respondents reported their opinions about watching short-
and long-form video content including movies, TV shows, sports and other
content across devices and from multiple providers.

Among the most notable findings:

  • 80 percent of streamers subscribe to at least one streaming video
    service in addition to, or instead of, Pay TV service from a cable,
    satellite or IP-TV provider.
  • 79 percent primarily stream video on their television sets.
  • Millennial streamers spend more than 50 percent of their TV time
    watching streaming video rather than traditional television and see
    decreased value in their Pay TV services because of their streaming
    choices.
  • 72 percent of sports streamers cite sports as their most important
    streaming service.
  • 20 percent of streamers plan to switch, downgrade or disconnect their
    Pay TV services in the next 6 months.
  • 48 percent of respondents would greatly value centralized search,
    recommendations, billing and discounts across all of their paid
    subscriptions, regardless of provider.

Streamers report watching more than 26 hours of television each week,
with half of this time spent viewing subscription streaming services
such as Netflix, Hulu and Amazon Prime. Notably, streaming services with
the highest subscription rates offer original content and sports
content. To align with these trends, the ability to offer new skinny
bundles and innovative OTT-like services will become increasingly
important for Pay TV providers.

“Two-thirds of US broadband households use a subscription video service
like Netflix,” said Michael Greeson, TDG co-founder and director of
research. “Forty percent of this segment subscribe to multiple streaming
services, making them prime prospects for value-added services that
deliver a new level of user engagement and blend multiple services into
a single experience.”

Survey responses point to a significant interest in a new type of
feature bundle, consistent with the recent market trend of incumbent Pay
TV providers working to integrate multiple streaming services into their
service offering. Consumers expressed interest in a new bundle that
offers the ability to search for content across multiple services, use a
single recommendation engine, receive multi-service discounts and have
unified billing. In fact, 60 percent of streamers see value in having a
single bill for all their streaming services.

“Consumers are building and bundling their video experience with
multiple providers, opening an opportunity for incumbent Pay TV
providers to leverage their growing partner ecosystem to package both
traditional and streamed services together to attract the multi-service
streamers,” said Brian Shepherd, president of broadband, cable and
satellite business at CSG International. “CSG believes that Pay TV
providers are uniquely positioned to deliver the video bundle of the
future, as they already have the network infrastructure, customer
preference history, analytic insights and billing relationship to tie
everything together in a way that delivers innovative new value to the
market.”

For an executive summary or full report of the survey findings including
consumer opinions on the value of streaming vs Pay TV, devices and
viewing time, future plans for Pay TV relationships, and value added
bundles, visit Going
with the Flow: How to Captivate Video Streamers
.

About CSG International
CSG
International
(NASDAQ: CSGS) is the trusted global partner to help clients launch
and monetize communications and entertainment services in the digital
age. Leveraging 30 years of experience and expertise in voice, video,
data and content services, CSG delivers market-leading revenue
management and customer interaction solutions in licensed and managed
service models. The company drives business transformation initiatives
for the majority of the top 100 global communications service providers,
including AT&T, Charter Communications, Comcast, DISH, ESPN,
Media-Saturn, Orange, Reliance, SingTel Optus, Telefonica, Time Warner
Cable, Vodafone, Vivo and Verizon. For more information, visit our
website at www.csgi.com.

Contacts

CSG International
Elise Brassell
Public Relations
+1-303-804-4962
Elise.brassell@csgi.com
or
Liz
Bauer
Investor Relations
+1-303-804-4065
Liz.bauer@csgi.com

?>