October 2, 2019
The percentage of U.S. households with multiple OTT subscriptions has increased by 130% since 2014, according to Parks Associates research.
In 2019, 46% of U.S. broadband households subscribe to two or more OTT services. The report, Partnering, Aggregation, and Bundling in Video Services found only 33% subscribed to multiple services in early 2017 and 20% in 2014.
“The number of OTT services available in the U.S. increased by 140% in five years, giving consumers an unprecedented number of options to meet their video needs,” said Parks Associates senior analyst Steve Nason in a statement. “Most OTT households are anchored by one of the three major OTT services — Netflix, Hulu, or Amazon Prime Video — but consumers are finding they can’t fulfill all their interests through a single service. Many small and medium-sized services are building their brand and subscriber base by filling in these gaps in content.”
Several trends in the video services industry are shaping partnerships, including intense competition, the move of content providers to launch direct-to-consumer offerings, the lack of differentiation among OTT services, and the existing infrastructure and consumer relationships among larger players, according to Parks.
While overall adoption and awareness of OTT video services as a category are high, awareness of any specific individual service is low, which will make it difficult for smaller services to match the scale, revenues, and marketing efforts of larger players, according to the research firm.
Parks Associates research shows nearly three in 10 OTT services in the United States are on Amazon’s Prime Video Channels aggregation platform, more than four times the rate from two years ago.
“Netflix can afford to license high-value content like ‘Seinfeld’ to supplement its original content, and Apple can buy commercial space during the Emmys and NFL games to promote its upcoming Apple TV+ service and its array of content and stars,” Nason said in a statement. “By contrast, smaller OTT services are having to harness the power of a partnership with an aggregator, bundling or content partner, or marketing and promotion partner to boost awareness of their brand and offerings.”
Additional findings include:
- More than half (53%) of U.S. broadband households subscribe to at least one OTT service and a pay-TV service;
- Nearly three-quarters subscribe to an OTT video service, up from 52% in 2014; and
- Among the OTT video services available in the United States, approximately 90 have fewer than 50,000 subscribers and 72 have fewer than 20,000.