7% of U.S. Homes Have Broadband and OTT Services, But No Pay TV
How many households subscribe to both broadband and an over-the-top (OTT) video service, but don't have a pay TV subscription? Thanks to a report from Parks Associates, we know the answer is 7 percent in the U.S. or 8.4 million. That includes homes that never had a pay TV account and those that cut the cord.
The report looks at other Western counties and finds the number is roughly four percent or less.
According to Brett Sappington, Parks Associates' director of research, TV Everywhere offerings haven't been popular with consumers, but OTT services are seeing strong growth.
“While operator attempts at TV Everywhere have made little impact, OTT video services are experiencing a boom," Sappington says. "A variety of new players are entering the market, and operators including Dish Networks, Rogers Communication, Bell Canada, and Sky are responding with OTT video services of their own.”
The Parks report predicts that OTT subscription revenues will grow from $9 billion in 2014 to over $19 billion in 2019. Over half of U.S. broadband-enabled households—57 percent— subscribe to an OTT service. That number is the same in the U.K., but 29 percent in Spain and 24 percent in Germany.
The full report, TV Everywhere and the New World of OTT, sells for $3,200.
According to a report from Informitv, declines continue for cable and satellite providers, with DirecTV seeing the biggest loss.
While Netflix will continue to dominate, Ooyala sees plenty of opportunities for niche services in kids, anime, and sports video.
Many Americans will find a set-top box under the tree this year. Roku is the category leader, followed by Chromecast.
A study of set-top box adoption finds that Roku has a commanding lead, thanks to an association with Netflix and a smart product strategy.
After the initial buzz has worn off, Chromecast owners decide they'd rather stream with a game console or set-top box.