Half of U.S. Broadband Households Use Internet-Connected TVs to View Online Video: Parks Associates
Nearly 40 percent of U.S. broadband households now have at least two OTT video service subscriptions, according to new research from Parks Associates. The research firm notes that consumers have reached a new stage in connected entertainment where OTT is a standard source of video and viewers are more willing to experiment with multiple OTT services.
“Every product or service has a natural market lifecycle that reflects the state of adoption, competition, and market development,” said Brett Sappington, Senior Director, Research, Parks Associates. “OTT video is no exception, with services evolving to keep up with a fast-moving market. Netflix, Amazon, Hulu, and other players have moved from simple subscription-based services to creators of award-winning original content such as House of Cards, Manchester by the Sea, and The Handmaid’s Tale.
Understanding the lifecycle of OTT video services allows market participants to better position their offerings and market strategy both for today and for the future, Sappington said.
According to Parks Associates research, 50 percent of U.S. broadband households watch long-form online video content on an internet-connected TV set. The international research firm also reveals:
Nearly six in 10 U.S. broadband households have an OTT subscription and 38 percent have two or more subscriptions.
Households that subscribe to three or more internet video services is one of the fastest growing segments in the U.S. OTT space, increasing from 10 percent of broadband households in 2016 to 15 percent in 2017.
In the past 30 days, nearly one-half of U.S. broadband households have accessed video content from a subscription OTT service; 31 percent accessed free content.
Parks Associates OTT’s migration from disruptor to dominance in a June 12 webcast sponsored by SeaChange International which assessed the growth potential, strategies, and future for both existing and new video services.
“Whether OTT is a friend or foe depends on whom you ask; however, there is consensus in the media and entertainment industry that OTT is the future of video,” said Marek Kielczewski, Global VP of Engineering at SeaChange International, who joined Sappington on the webcast. “The growing adoption of skinny bundles and D2C offerings is a clear indication that a ‘wait-and-see’ or ‘do-nothing’ strategy is extremely risky."
(For more information visit http://www.parksassociates.com).