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Research from Parks Associates finds subscribers of 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.
Brett Sappington, director, research, Parks Associates, commented: “Our research shows roughly 50 per cent 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 pay-TV service.”
“Amazon Prime subscribers report their expenditure on rented and purchased downloads is increasing,” added 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.”