Nearly 40% of US broadband households now have at least two OTT video service subscriptions, according to 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.”
“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 Kieczewski, Global VP of Engineering at SeaChange International.
“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.”
According to Parks Associates research, 50% of US broadband households watch long-form online video content on an internet-connected TV set. The international research firm also reveals: 69% of US BB HHs have an OTT subscription; 38% have two or more subscriptions.
Households that subscribe to three or more internet video services is one of the fastest growing segments in the US OTT space, increasing from 10% of broadband households in 2016 to 15% 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% accessed free content.