Analyst: Nearly half OTT subs multiple subscribers
January 3, 2017
Findings from research and analysis firm Parks Associates research show that 31 per cent of US broadband households have multiple OTT service subscriptions, representing nearly one-half of the 63 per cent of US broadband households subscribing to at least one OTT service.
“Parks Associates, through our OTT Video Market Tracker service, has identified the service-stacking phenomenon as an important step in the growth of the US OTT video services marketplace,” said Brett Sappington, Senior Director of Research, Parks Associates. “Consumer willingness to subscribe to multiple services provides the consumer-paid revenues necessary for continued industry growth.”
The most popular service stack is Netflix and Amazon Video — 12 per cent of all US broadband households have this combination.
“There are service stackers willing to experiment with different OTT combinations as new services arise,” Sappington said. “The regular release of high-quality original content, such as The Grand Tour (Amazon) and Gilmore Girls: A Year in the Life (Netflix), ensures the large OTT players will remain a core, consistent subscription among service-stacking households.”
Netflix has yet to announce its plans for CES 2017, but the streaming giant could roll out an offline viewing mode, which has been a long-rumoured addition. At CES 2016, the OTT leader expanded its global service and launched in almost every country in the world.
Amazon, which recently launched a standalone streaming music service, is working to tie its online services to its expanding ecosystem of connected home products, including the Echo.
“The average spending on subscription OTT video has increased over the past four years, with a notable jump in 2016,” said Glenn Hower, Senior Analyst, Parks Associates. “The average monthly spend of $7.95 (€7.65) on subscription OTT video services is remarkably close to the $7.99 pricing of the lowest tiers of service for Netflix and Hulu, indicating that consumer expectations for US market pricing has been set by Hulu and Netflix.”
Additional research from Parks Associates’ OTT Video Market Tracker shows:
- US consumers pay an average of $29 per month for incremental video-related entertainment beyond pay TV.
- US broadband households spent only $0.80 per month buying video downloads.
- The movie industry saw consumers spend an average of $9.32 per month buying movie tickets for the cinema.
- Online TV services and live broadcasts of linear channels will be a common theme in 2017, with several new services scheduled to launch, including options from Hulu and YouTube.