38% of U.S. Households Have 2 or More OTT Subscriptions
Among broadband-enabled households in the United States, 69 percent subscribe to at least 1 over-the-top (OTT) video service, while 38 percent subscribe to at least 2, reports research company Parks Associates. What's more, households with 3 or more OTT subscriptions are the fastest growing category. In 2016, 10 percent of households with broadband had 3 or more subscriptions; in 2017, 15 percent did.
Those subscription services are seeing a lot of use. Almost half of U.S. households with broadband have streamed subscription OTT video in the past 30 days. That beats out the 31 percent that have streamed free content in the past 30 days.
All of this subscribing and streaming makes the case that OTT is now a regular part of mainstream entertainment options, Parks points out.
"Every product or service has a natural market lifecycle that reflects the state of adoption, competition, and market development," said Brett Sappington, senior director of research for Parks Associates. "OTT video is no exception, with services evolving to keep up with a fast-moving market. Netflix, Amazon, Hulu, and other players have moved from simple subscription-based services to creators of award-winning original content such as House of Cards, Manchester by the Sea, and The Handmaid's Tale."
In May, Parks showed that 40 percent of broadband homes in the U.S. now own a set-top box and over half own a connected TV.
OTT services are growing quickly, but many people still feel tethered to pay TV for access to live sports, news, and events.
Connected TV ownership is strong, but consumers prefer the experience set-top boxes provide when streaming movies and TV shows.