March 7, 2019
A majority (52%) of U.S. broadband households are watching online video on a TV that is connected to the internet, according to research from Parks Associates.
The study, 360 View: Digital Media and Connected Consumers, also finds that watching TV or movies at home is the most popular leisure activity among U.S. broadband households, with 55% selecting this among their top two favorite leisure activities.
“While the total number of hours consuming videos has declined, consumers are watching more internet video on the largest screen available,” said Billy Nayden, research analyst with Parks Associates, in a statement. “The number of hours consumers report watching video on a TV increased for the first time since 2014, with connected devices enabling internet video services on TV and shifting consumers away from PC and mobile viewing. As OTT competition becomes a battle for the living room, the challenge for device makers and content producers is finding the correct product mix to maximize both profit and utility.”
The study found subscriptions are the dominant business model for OTT services.
As more services emerge, many stakeholders fear an impending subscription overload in U.S. households, according to Parks.
“As consumers’ taste for OTT experimentation wanes, they will start to resist the push to add another monthly subscription to their households,” Nayden said in a statement. “Many providers are starting to lead with freemium and ad-based models, in anticipation of this pushback.”
Other findings were:
- 19% of consumers subscribe to either Netflix, Hulu or Amazon Prime Video and another OTT service, compared to 13% in 2017;
- Consumers watched 25.7 hours of video per week in 2018, down from 29.5 hours per week in 2016;
- Local broadcast/channels and programs are the most enjoyed type of programming.