Research: A Quarter of U.S. Broadband Households Use AVOD Services

A quarter of U.S. broadband households have watched video on a free, ad-based OTT service in the past 30 days, according to research from Parks Associates.

No single AVOD service dominates this market, according to the report 360 View: Video Services & Connected Consumers. Among the leaders, 7% of U.S. broadband households use The Roku Channel, 6% use Pluto TV and 6% use Crackle, according to Parks.

“Entertainment and communication features like offline viewing are becoming an important part of consumer viewing habits, especially for younger generations. Nearly 50% of current pay-TV subscribers have a DVR,” said Elizabeth Parks, president, Parks Associates. “VOD and DVR are key elements in operator video strategies now that OTT on-demand services are mainstream. TiVo announced a 4K streaming device at CES that aggregates where content can be accessed from, putting an emphasis on search and discovery and an integrated experience for the consumer.”

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“Consumers and their entertainment choices remain the key driver of change within the entertainment industry,” said Parks senior analyst Steve Nason. “At CES, Quibi, led by Meg Whitman and Jeffrey Katzenberg, announced a mobile-only service featuring short-form content and subscription tiers with and without advertising, which will target younger, more mobile consumers.”

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The report’s other findings include:

  • One-third of broadband households are interested in vMVPD service bundles.
  • One-in-five pay-TV subscribers claim that they can access an OTT service via their channel guide or on-screen menu.
  • One-third of broadband households have trialed an OTT subscription service in the past six months.
  • 26% find purchasing items seen in advertisements appealing or very appealing.
  • 31% of US broadband households subscribe to HBO, the market leader in premium channels.
  • One-quarter of US broadband households use an antenna to watch live TV channels.
  • Overall 78% of broadband households watch live TV channels.
  • More than a quarter of U.S. broadband households are interested in innovative offerings accessed via television, such as offline viewing, video gaming, food delivery, ride sharing, and gambling.

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