May 20, 2020
It’s an over-the-top video world and, as expected, new data from Parks Associates finds 67% of domestic broadband households use at least one Internet-connected video device, either a smart TV, streaming media player, connected gaming console, Blu-ray Disc player — or smartphone.
“These platforms stand to win big as consumers increasingly sign up for OTT service through storefronts like Amazon Prime Video Channels, Apple TV Channels, or Roku Channel Premium Subscriptions,” senior analyst Kristen Hanich said in a statement.
Parks’ “Connected Entertainment Ecosystems: Competition & Cooperation” report notes that while all of the aforementioned devices get plenty of use, they also have long replacement cycles, which is driving manufacturers to explore new strategies, including software and service offerings, exclusive hardware-content bundles, and open ecosystems.
“The increasing fragmentation in the content services market means there’s no single path to reach consumers,” Hanich said.
The report notes that in 2019 alone, 6.4 million U.S. consumers cut the pay-TV cord, transitioning to OTT streaming and/or broadcast television, both of which continue to rise in adoption and usage.
Hanich said ongoing changes in accessing entertainment is pushing open ecosystems where consumers can access most streaming services on their device regardless of which platform they decide to use.
“The connected entertainment space is moving towards a smartphone model, in which a handful of platform players control the operating system … and consumer access to services and features,” she said.