Published November 14th, 2017
It may be no surprise to see Netflix, Amazon and Hulu maintain their position as the top guns in the US over-the-top (OTT) market, but research from Parks Associates has revealed that bubbling under the crucial three are now a number of interesting players.
Based on subscriber numbers, the researcher found that the top ten comprised Netflix, Amazon Video (Amazon Prime), Hulu (SVOD), MLB.TV, HBO Now, Starz, YouTube Red, Showtime, CBS All Access and Sling TV. Of most note is the velocity that the skinny bundles have gained in a short space of time. In addition, the HBO Now service has made particular progress.
Parks also noted that YouTube Red entered the top ten list during the past year, and the OTT services for premium channels Showtime and Starz moved up or entered the list. Skinny service Sling TV has maintained its strong growth from 2016, and MLB and WWE continue to lead in sports-related subscription OTT video services, with WWE sitting just outside the top ten.
“While the top three are no surprise, the big story over the past year has been the rapid subscriber growth for OTT video services from HBO, Showtime, and Starz,” said the Subscription Over-The-Top (OTT) Video Services In The US Market report author and Parks Associates senior director of research, Brett Sappington. “The combination of recognised brands and popular original content is driving demand for their offerings. Services such as Sling TV and Crunchyroll are still enjoying strong growth, but other services have simply grown at a faster rate over the past year.”
The research also found that online pay-TV services were also growing quickly, fueled by advertising campaigns across the US. “YouTube TV’s advertising and sponsorship deal with MLB during the recent World Series is just one example of the marketing dollars behind these service offerings,” Sappington added. “While more online pay-TV services could enter the top ten within the next year, those services that comprise the top ten are recognised brands that are aggressively working to expand their subscriber bases. Displacing them will be a difficult task.”
Looking to future trends Parks Associates noted that operators and OTT video services were working together in promotions, OTT service distribution and bundling, integration into the set-top box, zero-rating of video in data services and billing. OTT services were also partnering with each other for distribution and bundling, service promotion, improved brand awareness and content licensing.
“Consumers have a variety of choices and are increasingly self-aggregating multiple OTT video services,” the analyst concluded. “As a result, partnerships within the OTT space are becoming more common, as operators, content owners, and OTT service providers all look to gain an edge in attracting subscribers and generating buzz for their offerings.”
Source: Rapid TV News
Over-the-top video services have overtaken TV set-top boxes as the primary place where consumers watch their favorite shows, according to the 2017 ”Conquering Content” study from Hub Entertainment Research.
Jul 10, 2017
Nov 09, 2017
Jan 22, 2019
There will be more than 777 million global SVOD subscriptions by 2023, more than double from 2017 according to Ooyala’s new State of the Broadcast Industry 2019 report, which also found that the momentum only stands to increase.
The report – which draws on Ooyala’s own data and analysis as well as research conducted by other organizations – also underscores that viewers of all ages are increasingly adopting streaming services as their primary source of TV content. While Boomers and the Silent Generation (those born before World War II) remain the lifeblood of traditional broadcasters, they too are increasingly adopting over-the-top (OTT) and video on demand (VOD) platforms.
2018 was a year of significant change in the broadcast industry. There was a surge in M&A activity, an increase in the amount of time consumers spent with SVOD and AVOD content and a significant decline in pay-TV subscribers in North America as viewers changed how they watch TV… OTT jumped into the mainstream. There’s even more change in the cards for 2019.
Among US adults 50-64, OTT viewing increased 45% between 2016 and 2017; among US adults 65+, viewing was up 36%.
The report also postulated that mobile platforms will be a significant factor in OTT consumption in the future, given that estimates say video could make up as much as 90% of all 5G traffic.
“For OTT, that means faster and smoother delivery of video, no buffering, higher resolution, and a better, more engaging experience for users; for AVOD companies specifically, it will foster the collection of better, deeper data that could be used to better personalize advertising,” said the report.
The lesson for traditional broadcasters, the report noted, is to adopt the mindset of a diversified media company – as more programmers and distributors are joining, rather than fighting, the push into OTT.
“Subscription and ad-supported OTT services are steadily replacing traditional content delivery, and there’s no end to the opportunity to create connections with a global audience,” said Ooyala principal analyst Jim O'Neill. “OTT is not traditional TV. It thrives upon consumer choice, often random interaction, and the convenience of viewing when, where and on what device a consumer chooses. It thrives upon its own ability to iterate in order to respond to the changing conditions of the new TV environment.”
Meanwhile, as mobile viewing soars, it turns out that screen size still matters to the majority of consumers. A full 40% of US consumers who replaced a TV between October 2016 and October 2018 said they wanted to purchase a bigger screen, per The NPD Group. And consumers are going all-in on 4K UHD, driven largely by SVOD services, like Netflix, and the promise of 4K and UHD content from major sporting events, like the Winter Olympics and the FIFA World Cup.
“Content owners have seen a massive increase in the demand for their products,” continued O'Neill. “That will continue as OTT services push out across the globe and original content maintains — and grows — its value. It’s becoming increasingly important for media companies – both big and small – to closely monitor and control the content supply chain.”
New OTT Services Aren’t Saturating the Market, they ARE the Market
Is the influx of new OTT services creating saturation in the market? Not by a long shot. While there’s likely a limit as to how many SVOD services users really are ready to pay for, that upper limit hasn’t yet been reached. And, as we see more channels become available a la carte, that limit may continue to rise, especially as younger consumers — who see streaming as the norm — grow older.