Subscribers to OTT services spend more per month renting and buying video downloads than the average household, which contributes to the success of Amazon’s business model of integrating transactional services with its Amazon Prime subscription service.
Two-thirds of Amazon Prime Instant Video subscribers use Amazon transactional service, according to Parks Associates.
“The role of OTT content in the connected home and its impact on other services will be key topics at the Connections Summit and CES 2014,” said Brett Sappington, director, research, Parks Associates, who will also participate in Broadband Unlimited at CES, in the session Connected TVs and the Re-Making of an Industry.
“Our research shows roughly 50% of US broadband households use subscription or transactional OTT video and OTT users spend more on video in general than the average household. Not counting pay-TV services, OTT subscribers spend $67 per month on video versus $40 on average for all US broadband households. The overwhelming majority of OTT users also have a pay-TV service.”
“Amazon Prime subscribers report their expenditure on rented and purchased downloads is increasing,” said John Barrett, director, Consumer Analytics, Parks Associates. “Netflix subscribers are more likely to say expenditure in all other categories has decreased—a fact that may reflect Netflix’s reliance on a single revenue model. Redbox Instant subscribers, conversely, are more likely to say expenditure is increasing in all categories.”
Connections Summit at CES 2014 features consumer research and business strategies on smart home services, Internet of Things, connected CE, and tech support.
