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One-Third of U.S. Broadband Households Have Multiple OTT Subs

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According to the researchers at Parks Associates, 31 percent of all U.S. broadband-enabled homes have multiple over-the-top (OTT) service subscriptions. Also, 63 percent subscribe to at least one OTT service.

Parks refers to this as "service stacking," and says it marks an important step in the industry's growth.

“Parks Associates, through our OTT Video Market Tracker service, has identified the service-stacking phenomenon as an important step in the growth of the U.S. OTT video services marketplace,” says Brett Sappington, senior director of research for Parks. “Consumer willingness to subscribe to multiple services provides the consumer-paid revenues necessary for continued industry growth.”

The research even identifies the most common service stack: Netflix and Amazon Video. Parks finds 12 percent of U.S. broadband homes have this combo. Both Netflix and Amazon keep subscribers happy by regularly releasing premium original content, Sappington notes.

Average OTT spending jumped in 2016 to $7.95, which is close to the lowest tier price for Netflix and Hulu. That's far more that the $.80 per month that broadband-enabled homes average on video downloads. Expect to hear a lot more about OTT services and live broadcasts in 2017, Parks says, as Hulu, YouTube, and others are preparing to launch new services. 

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