Published December 6th, 2017
More than 50% of US OTT subscription households subscribe to multiple OTT video services, according to Parks Associates.
Of these multi-OTT households, 81% use Netflix plus some other service or combination of services, typically Amazon or Hulu.
“Not only are more households subscribing to OTT video services than ever before, but also the average number of subscriptions per household is increasing as well. The OTT video pie getting bigger, and it is getting deeper as well,” said Brett Sappington, senior director of research, Parks Associates.
“What we are seeing is consumers adding to the number of sources that they use to access interesting content. This growth is critical. It means that video services do not necessarily have to displace a Netflix or other large service in order to gain market share. Services can potentially find success as a complementary offering as well.”
“A common assumption is that consumers who pay for multiple subscription OTT video services would not need to, or have time to, use free OTT video service options. Yet, we find the opposite to be the case. Only 30% of households subscribing to one subscription service use at least one free, ad-supported online video service,” Sappington said.
“That number jumps to 47% of households subscribing to three subscription services and 63% if a household subscribes to five or more services.”
Parks Associates’ OTT Video Market Tracker has research services for North America and Europe to track the content offerings, business strategies, and subscription numbers for OTT services in these regions. Additional data from these services include: with the exception of Netflix and Amazon Prime, OTT services are experiencing churn rates exceeding 50% of their subscriber base. 69% of US broadband households subscribe to at least one OTT video service (3Q 2017). More than 50% of US broadband households that use OTT services subscribe to multiple OTT video services, compared to 20% in 2014.
Source: Broadband TV News
Jun 15, 2014
Jun 23, 2017
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Parks Associates research has found that OTT video services have transitioned back into the home's living room, with a majority (52%) of U.S. broadband households now watching online video on a TV that is connected to the internet.
Its report, 360 View: Digital Media and Connected Consumers, also found that watching TV or films at home is the most popular leisure activity among US broadband households, with 55% selecting this among their top two favourite leisure activities.
"While the total number of hours consuming videos has declined, consumers are watching more internet video on the largest screen available," said Billy Nayden, research analyst, Parks Associates. "The number of hours consumers report watching video on a TV increased for the first time since 2014, with connected devices enabling internet video services on TV and shifting consumers away from PC and mobile viewing. As OTT competition becomes a battle for the living room, the challenge for device makers and content producers is finding the correct product mix to maximise both profit and utility."
The report also found that subscriptions are the dominant business model for OTT services. As more services emerge, many stakeholders fear an impending subscription overload in US households.
"As consumers' taste for OTT experimentation wanes, they will start to resist the push to add another monthly subscription to their households," Nayden said. "Many providers are starting to lead with freemium and ad-based models, in anticipation of this pushback."
Parks Associates also found that 19% of consumers subscribe to either Netflix, Hulu, or Amazon Prime Video and another OTT service, compared to 13% in 2017; and overall, consumers watched 25.7 hours of video per week in 2018, down from 29.5 hours per week in 2016.
Source: Rapid TV News & Parks Associate