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According to international research firm Parks Associates, 59 per cent of US broadband households want access to on-demand YouTube content through their pay-TV service, with the growing number of smart TVs and connected devices driving interest in online video options.
Parks Associates reports over 80 per cent of viewers interested in YouTube opt for a free, advertising-based offering, leaving few willing to pay to view YouTube content. However, the research firm notes, YouTube is investing in more original and professional content, with a growing lineup of channels and new functions such as Channel Search. By creating a more TV-like experience, YouTube enhances its value proposition to viewers, advertisers, and pay-TV providers.
“Connected consumer electronics, particularly smart TVs, are changing the consumer experience and creating opportunities for providers to lure subscribers away from OTT services such as Netflix and Hulu,” said Stuart Sikes, President, Parks Associates. “Connected devices are impacting how companies distribute content, sell services, and position advertising. New business models and content services are dramatically changing the industry.”