October 20, 2020
Over-the-top video distribution continues to proliferate nationwide. New data from Parks Associates suggests the number of OTT video services has more than doubled in the past six years to 300 platforms through the third quarter (ended Sept. 30).
Steve Nason, research director at Dallas-based Parks, said the coronavirus-related shutdown of movie theaters, and studios delaying the release of major titles to next year, accelerated OTT video adoption among consumers.
“The decision to delay the latest James Bond film No Time to Die hit the theater industry hard, and Disney’s announcement to move the Pixar film Soul to Disney+ shows studios are putting more emphasis on streaming,” Nason said in a statement.
The analyst contends that with studios also owning digital distribution, increased experimentation with transactional VOD and theatrical windowing is on the agenda. Nason called the recent partnership between NBCUniversal and Roku to distribute new streaming service Peacock as a “win-win” for both parties.
“Through this partnership, NBCUniversal gets its new marquee OTT service on one of the leading streaming video platforms, and Roku gets a significant incremental revenue bump from Peacock’s advertising, no matter the split,” Nason said. “The agreement will yield large gains of users and paying subscribers for Peacock as it takes on the Big 3 [Netflix, Hulu and Amazon Prime Video] in OTT and newer entrants from Disney, Apple, WarnerMedia, and ViacomCBS.”