June 11, 2018
Parks Associates research finds nearly 40% of U.S. broadband households now have at least two OTT video service subscriptions, according to a report released June 11.
The research firm notes that consumers have reached a new stage in connected entertainment where OTT is a standard source of video and viewers are more willing to experiment with multiple OTT services.
Parks Associates says it will examine this transition for OTT “from disruptor to dominance” in the industry webcast “The Lifecycle of OTT Video Services” on Tuesday, June 12, 10 a.m. CT. The webcast, sponsored by SeaChange, will assess the growth potential, strategies, and future for both existing and new video services.
“Every product or service has a natural market lifecycle that reflects the state of adoption, competition, and market development,” said Brett Sappington, Senior Director, Research, Parks Associates. “OTT video is no exception, with services evolving to keep up with a fast-moving market. Netflix, Amazon, Hulu, and other players have moved from simple subscription-based services to creators of award-winning original content such as ‘House of Cards,’ ‘Manchester by the Sea,’ and ‘The Handmaid’s Tale.’
“Understanding the lifecycle of OTT video services allows market participants to better position their offerings and market strategy both for today and for the future.”
During the webcast, Sappington and Marek Kiełczewski, global VP of engineering at SeaChange International, will discuss the state of the lifecycle for OTT video in North America, Europe, and other parts of the world; go-to-market (GTM) strategies, innovative technologies, and business models that telecom, technology, and media companies are using to compete in this disrupted marketplace; and effective approaches to grow an audience and ensure success of the video service through advanced merchandising and promotion.
According to Parks Associates research, 50% of U.S. broadband households watch long-form online video content on an internet-connected TV set. The international research firm also reveals:
69% of U.S. BB HHs have an OTT subscription; 38% have two or more subscriptions.
Households that subscribe to three or more Internet video services is one of the fastest-growing segments in the U.S. OTT space, increasing from 10% of broadband households in 2016 to 15% in 2017.
In the past 30 days, nearly one-half of U.S. broadband households have accessed video content from a subscription OTT service; 31% accessed free content.