Parks Associates March 25 reported that U.S. broadband households spent an average of $16 per month on OTT video services in early 2020, double ($8) what they spent in 2018. The Dallas-based research firm also found that 45% of survey respondents with traditional pay-TV said they are likely to switch to an online TV multichannel video programming distributor in the next 12 months.
Online TV platforms include market leader Hulu+Live TV, Sling TV, AT&T TV, YouTube TV, Fubo TV and Philo, among others.
“Today’s video services market is in a historic state of disruption and disarray,” senior analyst Paul Erickson said in a statement. “Our Q3 2020 survey finds 29% of current subscribers to traditional pay TV are unhappy with the price and value of their service, and [online TV providers] are seeking to address that need with a variety of different bundles and value propositions.”
“We saw an unprecedented acceleration of consumer interest in aggregators and [online TV] in 2020, and there’s still a lot of room to grow viewership — especially through exceptional content discovery, 47% of viewers still turn to traditional pay-TV to find their next show, compared to 18% for [online TV],” added Nic Wilson, head of customer success at TiVo.