Over 50% US households pay for multiple OTT services
MUMBAI: Parks Associates has released a new OTT research stating that more than 50% of OTT- subscription households in US subscribe to multiple OTT video services.
There is a 30% growth in subscription when compared to 20% subscription rate in 2014. According to the research with the exception of Netflix and Amazon Prime, OTT services are experiencing churn rates exceeding 50% of their subscriber base. It states that 69% of US broadband households subscribe to at least one OTT video service as per the data in Q3, 2017.
The research also features that of these multi-OTT households, 81% use Netflix plus other combination of services, typically Amazon or Hulu.
Parks Associates senior director of research Brett Sappington said, “Not only are more households subscribing to OTT video services than ever before, but also the average number of subscriptions per household is increasing as well. The OTT video pie getting bigger, and it is getting deeper as well. What we are seeing is consumers adding to the number of sources that they use to access interesting content. This growth is critical. It means that video services do not necessarily have to displace a Netflix or other large service in order to gain market share. Services can potentially find success as a complementary offering as well”
Parks Associates’ OTT Video Market Tracker reports consumers who pay for subscription OTT services are also more likely than non-subscribers to watch free online video services. Furthermore, the more OTT video subscriptions a consumer has, the more likely they are to use a free or freemium video service.
“A common assumption is that consumers who pay for multiple subscription OTT video services would not need to, or have time to, use free OTT video service options. Yet, we find the opposite to be the case. Only 30% of households subscribing to one subscription service use at least one free, ad-supported online video service. That number jumps to 47 per cent of households subscribing to three subscription services and 63 per cent if a household subscribes to five or more services” Sappington said.
Parks Associates’ OTT Video Market Tracker has research services for North America and Europe to track the content offerings, business strategies, and subscription numbers for OTT services in these regions.