May 23, 2019
With a Netflix subscription in every “pot,” followed closely behind by Hulu and Amazon Prime Video, over-the-top video household penetration in the United States has reached overload status.
New data from Hub Entertainment Research found that the average domestic household now has 4.5 sources of video entertainment, including pay-TV — a statistic that increases to 5.2 sources among younger adults and homes with children.
About 70% of 1,631 survey respondents with broadband use at least one OTT video service such as Netflix, Hulu and Prime Video, while respondents who use more than one service increased 7%.
Netflix penetration inched up 62% from 61% last year, while Hulu use increased 8% and Amazon upped 5%.
Hub also found that 24% of respondents “have too many TV services” and won’t subscribe to a new service, which is up from 14% last year. Another 36% would cancel an existing service before adding another one.
“The TV landscape is approaching zero-sum status, with more consumers insisting they’d drop an existing service before adding a new one,” Peter Fondulas, principal at Hub and co-author of the study, said in a statement, as reported by Advanced-Television. “That puts added pressure on all TV services — including those on the way from Disney, Apple, and WarnerMedia — to offer the type of value that consumers feel they can’t live without.”
“Viewers are watching content from more sources than ever,” said Jon Giegengack, co-author of the study. “That raises the bar for new platforms entering the market — but it’s a growing opportunity for platforms that can aggregate content from multiple sources. For consumers, simplicity is becoming a more important factor to consider.”