Global OTT Subscription Market to Grow to Over 400M by 2022
If any further evidence was needed that living room streaming is now mainstream, consider the following forecast released today by research company Parks Associates: By 2022, over 265 million households worldwide will subscribe to an over-the-top (OTT) video service. Many of those households will pay for multiple services, so Parks estimates they will have over 400 million subscriptions in total.
Parks has seen a steady increase in the sales of connected TVs and streaming media players since 2010. Adding voice control to these devices will be the next major offering.
"Fifty-three percent of U.S. broadband households own a smart TV, and both smart TVs and streaming media players are continually improving the user experience to accommodate the shifting habits of consumers, including integration with voice-based digital assistant ecosystems," says Kristen Hanich, research analyst for Parks Associates. "The rise of these digital assistants is another key trend over the last few years, with Apple Siri, Amazon Alexa, Google Assistant, Microsoft Cortana, and Samsung Bixby, among others, now on the market. Both smart home and connected entertainment developers are working to integrate this functionality into their products."
Parks research shows that over 70 percent of U.S. households with broadband have an entertainment device that connects to the internet, and 17 percent own both a smart home device and an internet-connected entertainment device. Consumers want their devices to all work together, with three-fourths rating interoperability important when buying a smart home product.
Younger viewers especially get much of their live video from online sources. Pay TV customers need to shift their offerings to stay relevant.
The OTT market is booming, as 69% of broadband households now have a subscription, and many subscribe to 3 or more services.
Sling TV makes a big jump in the top 10, but skinny bundles in the works from DirecTV and Hulu are certain to shake things up.