Research from Parks Associates highlights the financial and business opportunities in the expanding markets for pay-TV and OTT services, digital content, cloud solutions, and connected consumer electronics (CE).
The research firm reports 64 per cent of US broadband households have an Internet-connected CE and 55 per cent have an OTT service subscription, an area poised for strong growth especially following HBO’s announcement that it will launch a stand-alone HBO Go service.
“The HBO OTT service announcement should not really be a surprise given the overall trends in the video service space,” said Brett Sappington, director, research, Parks Associates. “HBO has been aggressive in the online space for some time, first testing a direct-to-consumer approach in Europe through HBO Nordic, its OTT video service offering. Competition in this space is set to increase massively as pay-TV providers, broadcasters, cable networks, and other content producers introduce new OTT services.”
“More than 75 per cent of streaming media player owners have an OTT subscription,” said Barbara Kraus, director, research, Parks Associates. “The high connection rate for all streaming devices highlights the high level of competition for all players in the industry. Video consumption on connected CE, smartphones, and tablets is increasing, with broadband consumers now averaging more than nine hours per week of consumption on these connected platforms. The market trends and consumer analysis featured in Parks Associates reports will help companies develop strategies to attract and retain the attention of these customers.”
Additional highlights from, the report include:
• Although the number of pay-TV households will exceed 1 billion worldwide by the end of 2015, consolidation, direct-to-consumer services by content producers, and the emergence of new entrants threaten to radically change the traditional television industry.
• 48 per cent of US broadband homes have a DVR, acquired either at retail or as part of their pay-TV subscription.
• Only 11 per cent of US broadband households are very familiar with 4K technology, but user-generated 4K UHD video could help increase awareness and interest: almost 80 per cent of smart TV owners view user-generated video content on their device.
• The gaming console is the most common Internet-connected device throughout the US; by brand, Wii and Xbox are in 35 per cent of US broadband households, and PlayStation is in 27 per cent of households.