Thursday, July 14, 2022

40 million households trialed and subscribed to at least one OTT service in the first half of 2021

OTT: Perception, Use, and Business Models highlights viewer preferences for OTT business models and conversion rates for OTT trials

International research firm Parks Associates’ new consumer study OTT: Perception, Use, and Business Models reveals 40 million US internet households trialed and subscribed to at least one OTT service in the first half of 2021. The research analyzes consumer use and perception across multiple business models, their libraries, and features.

Free trials offer consumers the opportunity to experiment with different streaming services. Nearly 50% of US internet households trialed at least one service in past six months, and 78% of those households ended up subscribing to at least one of these services. While major services such as Netflix and Disney+ have dispensed with free trials, smaller services find that trials turn into subscribers and help them stay competitive in this crowded market.

“Trials are an effective onboarding tool, with 40 million households trialing and then subscribing to at least one service in the past six months,” said Eric Sorensen, Sr. Contributing Analyst, Parks Associates. “The more services consumers try, the more they are likely to subscribe to at least one. Consumers who frequently trial different services are highly engaged video consumers in general, so services need to cater to these users.”

For consumers, content ultimately drives their decision to stay with a subscription. The large providers are planning significant content development expenditures in 2022 and beyond. For example, Netflix is set to spend more than $17 billion on content, while Disney+ has committed to spending $33 billion on programming and content.

“Low cost barriers drive consumers to sign up for free trials, but the content will keep them,” Sorensen said. “All content creation efforts are focused on acquiring new customers and retaining those who are already subscribed by providing compelling content.”

To schedule an interview with an analyst or to request specific data, please contact Rosey Sera at rosey@parksassociates.com or 972-490-0233.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

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