January 19, 2022
New Parks Associates consumer research finds that in Q3 2021, 27% of U.S. broadband subscribers reported using the Samsung Tizen Smart TV as their primary device for consuming video content.
“The smart-TV will cement its status as the default streaming platform in the households,” Eric Sorensen, senior contributing analyst, said in a statement.
Sorensen said he expects to see more content partnerships and service acquisitions among providers and manufacturers in 2022. He contends content creators will leverage their ability to reach audiences directly, while service and content providers will adapt their business models to anticipate higher levels of churn than in previous years.
Acquisitions and consolidations are becoming key options for streaming firms to compete in the face of limited material and the constant demand for more new content. Parks notes that the average churn rate for SVODs increased to 45% in 2021, a 5.5% jump from 2020. Consumers hold on to the services they use the most and jump among the others, paying for a program or season and then canceling when they are finished. The number of subscriptions may rise and fall over time, indicating that churn rates will continue to be elevated.
Parks also suggests streaming media providers will face increasing competition from digital and social content producers in 2022. Popular online content creators are circumventing established distribution models and building their streaming applications from the ground up. For instance, KevOnStage Studios, created by comedian Kevin Fredericks, whose stage name is KevOnStage, is very successful with his YouTube channel.
“Streaming apps provide new revenue opportunities, especially with the chance to retain content ownership rights,” Sorensen said. “Digital content creators can monetize content and build audiences collected from social networking and video sharing platforms to their streaming applications and websites.”
The OTT Video Market Tracker, an annual service from Parks Associates, features monthly updates on trends and market activities in the OTT video space, including comprehensive tracking of existing and emerging players and quarterly subscriber estimates.
Parks recently released its annual Top 10 domestic subscription OTT video services, with Disney+ replacing Hulu among the top three.
- Prime Video
- HBO Max
- Apple TV+