Data from analyst firm Parks Associates reveals 54 per cent of US broadband households now combine one of the big three VoD players (Netflix, Amazon, Hulu) with at least one other subscription OTT service.
Currently, 82 per cent of US broadband households subscribe to an OTT service, and OTT service stacking has grown exponentially as new services such as Paramount+ emerge with low price points. According to Parks, as cord cutters migrate away from traditional pay-TV, they seek service offerings that more closely meet their video content needs, with the added value of lower cost and flexible use cases. Parks Associates research notes cord cutters used to spend $117 per month on pay-TV services and are now paying $85 per month for OTT services.
“It’s a crowded market, and households continue to diversify their subscriptions,” said Elizabeth Parks, President, Parks Associates. “Delivering relevant content with excellent personalised experiences is a key focal point to stay competitive.”
“To me, customers are stating no one service can be everything to everyone,” said Michael Ribero, Chief Subscription Officer, The Washington Post, a participant in Parks Associates’ forthcoming webinar, ‘OTT Customer Acquisition: Opportunities and Challenges’, in partnership with Brightcove. “I think this helps services with a clear identity while others will need to clarify how they fit into the customer’s bundle. And I believe this has downstream ramifications especially for discovering new shows and content.”