A new report from research firm Parks Associates says more households than ever are streaming their entertainment – and they likely maintain multiple subscriptions.
Many of the services are free, but paying for multiple services such as Netflix or Hulu is becoming the norm.
The report says:
- 69% of U.S. broadband households subscribe to at least one OTT video service (3Q 2017).
- More than 50% of U.S. broadband households subscribe to multiple OTT video services, compared to 20% in 2014.
“Not only are more households subscribing to OTT video services than ever before, but also the average number of subscriptions per household is increasing as well. The OTT video pie is getting bigger, and it is getting deeper as well,” said Brett Sappington, Senior Director of Research, Parks Associates.
“What we are seeing is consumers adding to the number of sources that they use to access interesting content. This growth is critical. It means that video services do not necessarily have to displace a Netflix or other large service in order to gain market share. Services can potentially find success as a complementary offering as well.”
The OTT (over the top television service) report shows that more than 50 percent of these households have multiple services with manny having five or more.
However, streaming providers do face problems.
“With the exception of Netflix and Amazon Prime, OTT services are experiencing churn rates exceeding 50% of their subscriber base,” Parks Associates says.