April 5, 2018
U.S. broadband households report their average monthly expenditure on video entertainment outside of a pay-TV subscription has dropped from $29 in the past two years to $23 in the last half of 2017, according to research from Parks Associates.
Spending on internet video has held steady at roughly $9 per month for several years, while reduced spending on cinema tickets and DVDs and Blu-ray discs contributed significantly to the overall decline, according to the research.
Parks Associates released two new studies—360 View: Digital Media and Connected Consumers and 360 View: Access and Entertainment in U.S. Broadband Households—which also show a decline in multiplatform usage among households, as use rates on individual screens declined despite the fact that overall video viewing has held steady.
“The number of overall consumers viewing video on a connected device remains steady at 92% of U.S. broadband households, but viewers are using fewer devices to access that content,” said Parks Associates senior director Brett Sappington in a statement. “This finding indicates that consumers are starting to settle into particular viewing habits. They are focusing more on their favorite screen and connected devices and are reducing time spent on other video screens.”
The research firm also noted that many viewers want access to their OTT services through their pay-TV set-top box. Currently, one-fifth of pay-TV subscribers have the ability to access online video services through their set-top box, and one-third of pay-TV subscribers say access to OTT via a pay-TV user interface or channel guide is appealing.
“Users are experimenting less with multiple connected devices, but they continue to experiment with multiple OTT video services,” said Parks Associates research analyst Hunter Sappington in a statement. “Many consumers now see OTT video as complementary to both other OTT video services and pay-TV services, rather than a replacement. Today’s OTT market is much more about bundling and partnerships than it is about winning subscribers from direct competitors.”
Other highlights of Parks research include:
- The increasing number of partnerships between pay-TV and OTT providers is driving the number of U.S. pay-TV households subscribing to an online video service through their pay-TV provider from 10% a year ago to 21% now.
- Households watch an average of 14.6 hours per week of video on a TV screen.