Starz, YouTube Red Enter Top 10 for OTT Subscriptions: Parks
The latest tally of the most popular over-the-top (OTT) video services in the U.S. has been released by the researchers at Parks Associates, and it shows Starz and YouTube Red making big moves. Neither service was in the top 10 last year, but they now come in at 6 (Starz) and 7 (YouTube Red).
If 2 services entered the top 10, that means 2 fell out. WWE Network and Crunchyroll fell off the list.
The top spots are held by Netflix, Amazon Video, Hulu, and MLB.TV, just as they were last year, in the same order. Notable moves include Sling TV falling from 6 to 10, and HBO Now jumping from 7 to 5.
Here's the complete top 10 for 2017:
- Amazon Video (Amazon Prime)
- Hulu (SVOD)
- HBO Now
- YouTube Red
- CBS All Access
- Sling TV
As the OTT market matures, Parks points out that operators and OTT services increasingly work together on bundled offerings and promotions. One-third of U.S. homes with broadband connectivity subscribe to multiple streaming services. The total market includes over 200 video services.
“All of the top services in the U.S. market are rapidly adding subscribers, and we are seeing the market overall continue to grow," says Brett Sappington, senior director of research for Parks Associates. "Over the past year, we have seen the number of U.S. broadband households subscribing to OTT video services jump from 63 percent to 69 percent. At the same time, the number of households with 3 or more subscriptions has also increased. So, more money is flowing into the market overall and into services beyond Netflix, Amazon, and Hulu.”
For comparison, see Parks Associates' lists from 2016 and 2015.
Young people who post videos to online platforms and spend a lot of time watching shared content are less likely to opt for paid services.
The number of broadband-enabled households with an OTT subscription will grow to 265 million by 2022, with many taking multiple subscriptions.
U.S. viewers are cocooning in front of their TVs, spending less at movie theaters and streaming more to their televisions.
Parks Associates data shows that 21 percent of pay TV customers subscribe to a streaming service through their account.
Younger viewers especially get much of their live video from online sources. Pay TV customers need to shift their offerings to stay relevant.
While mobile video viewing is on the rise, unlimited data plans no longer get subscribers to switch. Carriers now offer OTT services as extras.
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.
Young adults show a greater-than-average preference for streaming video services, and are less likely to have pay subscriptions than older adults.
U.S. viewers are testing the waters, sampling streaming video services quickly then moving on to try something else.