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IBB Consulting: Majority Of Paid OTT Users Willing To Spend More On Existing Subscriptions, Add New Ones

New consumer research and insight from IBB Consulting reveals engagement with paid OTT, plans to add and spend on new services, and interest in live OTT subscription content.
PHILADELPHIA(6/15/2017) -

IBB Consulting, a premier consulting firm guiding business and technology innovation at the convergence of media, broadband, and mobility, today announced its latest insights into the market for paid OTT or “SVOD” services. In a survey of 1,051 U.S. online consumer adults that subscribe to at least one paid OTT service, IBB found that a majority of SVOD subscribers (61%) are willing to spend $2 or more to keep their favorite service and (81%) are willing to spend to add a new service that had content they found interesting. Details about these findings are available in the report “Paid OTT Video Services: Research & Insights Into Growth Opportunities & Consumer Behaviors,” available for download via IBB’s website

IBB Consulting’s latest research and analysis of the paid OTT market reveals engagement with SVOD, plans to add and spend on new services, and interest in live OTT subscription content. Additional key takeaways include:  

  • More than half (51%) of paid OTT users subscribe to more than one SVOD service, with 18% paying for three or more;  
  • Younger demographics, especially millennials, are more likely than any other demographic to subscribe to three or more paid OTT services; 
  • Based on average SVOD pricing, a majority (61%) of SVOD subscribers are willing to pay at least 20% more for their favorite service; 
  • Interest in live TV is strong, with nearly half (47%) of paid streamers willing to pay beyond their current subscription costs to add live content, 
  • Millennials are more likely than any other demographic to be willing to spend on live streaming content; and
  • 29% of paid OTT video subscribers plan to add an additional paid service within the next six months.

“There is continued increasing demand for SVOD, and having the right tools and data to find and engage customers when they’re ready to buy is critical in this competitive market,” said Jonathan Weitz, partner, IBB consulting. “When IBB works with clients on SVOD marketing strategies, we emphasize that essential components of a world-class offering are a high-quality viewing experience with compelling features and an attractive interface, instant access to a diverse set of flagship content, and easily findable ancillary programming that feels familiar but offers new content to discover.”

As paid OTT users evolve in their willingness to seek out and buy new services, so does their viewing behavior and demands. When it comes to finding content, one-third of users say they prefer browsing and surfing, 24% rely on suggestions from social media, 19% get recommendations online and 13% rely on either in-app recommendations or search tools. 

“Almost half of consumers’ preferred discovery options require that OTT providers offer features that support a better experience,” said Weitz. “This means that in addition to improving how paid OTT providers market to new users, they must also take steps to ensure that offerings are easy to use. With constantly expanding libraries, strong human curation and effective recommendation engines driven by machine learning, in particular, are key to the overall SVOD customer experience.”

IBB Consulting advises media companies that a subscription OTT offering must either launch as a world-class offering or evolve quickly to meet this standard. Paid OTT services have the potential to become revenue centers that lay the foundation for future offerings. 

Commenting on the demands of market competition, Weitz said, “Today, SVOD services must look incredible, function smoothly and deliver consistently outstanding customer experiences. And as OTT becomes more international, differentiation on a global scale is even more essential. This requires a solid marketing strategy for scaling user bases and mitigating churn. IBB recommends that SVOD services implement comprehensive plans that include span segmentation, programmatic, cross-channel attribution, email marketing, and push messaging and CRM.”

For more of IBB’s insights into the OTT market opportunity visit or download the full “Paid OTT Video Services” report here. Charts to accompany the data discussed in the report are available at

About IBB Consulting 

IBB Consulting is a premier consulting firm serving top companies in wireless and mobility, broadband and media. Founded in 2001, IBB’s team of senior industry experts leverages its extensive business planning, strategy and execution experience to help clients pioneer new products and services, develop innovative business models, and successfully execute business operations. IBB has worked with leading companies to conceive and grow some of the most significant strategic, marketing and operational and technology initiatives in the industry. The firm is based in Philadelphia. More information about IBB is available at

IBB Consulting
Editorial Contact:
Brian Baumley