Wednesday, August 31, 2016

More than 25% of OTT video service subscriptions are purchased through a connected device app

New industry whitepaper shows 37% of Hulu subscribers used an app to sign up for the service

A new Parks Associates whitepaper, sponsored by Ooyala, reveals the importance of connected device apps for the monetization of video services as they are now the second most used method for consumers subscribing to OTT services. The complimentary whitepaper, Connected Apps: The New Battleground for Video Services, shows more than 25% of OTT video service subscriptions were purchased through a connected device app, including apps on streaming media players, game consoles, and connected TVs. Apps on connected devices trail only service provider websites in securing OTT subscribers.

“This finding reveals the increasing importance of connected devices as a channel for revenue generation. OTT video services continue to lead pay-TV providers, broadcasters, and cable networks in use of connected apps to deliver content to the television,” said Brett Sappington, Senior Director of Research, Parks Associates.“Lacking a presence on a connected device is essentially ceding the market to others. As competition for video services becomes more intense, companies are adding support and enhancing their apps for connected devices.”

Method of Subscribing to OTT Video Service

The biggest beneficiary of connected app usage among OTT providers has been Hulu, with 37% of its subscribers signing up for their subscription through a connected device. OTT leader Netflix has seen 28% of its subscribers come on board using this method.

“Parks Associates forecasts that OTT subscription service revenues will double from $15 billion worldwide in 2015 to $30 billion by the end of 2020; however, entering the OTT market has historically been extremely costly and time intensive, holding back many companies from capturing their share of the market,” said Belsasar Lepe, Co-founder of Ooyala. “Ooyala now offers a turnkey solution for building and deploying rich OTT experiences, reaching web, mobile, and connected devices quickly, cost-effectively, and without requiring highly technical staff.”

Connected Apps: The New Battleground for Video Services examines how video apps on connected devices are playing a key role in the competitive landscape of digital video entertainment. The whitepaper notes increased attention on apps is not unique to just OTT providers but rather a variety of industries viewing apps as a way to improve their business and interaction with consumers, including:

  • Pay-TV Providers
  • Broadcasters
  • Cable Networks
  • Media/Publishers

“Connected apps are no longer a way to stand out from the crowd – they are essential for survival,” Sappington said. “In an increasingly competitive environment, greater reach and exposure give companies the chance to capture attention and revenues.”

To download Connected Apps: The New Battleground for Video Services, visit To schedule an interview with an analyst or to request specific data, contact Holly Sprague at, 720.987.6614.

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 creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webinars, the CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, Connected Health Summit: Engaging Consumers, and Future of Video: OTT, Pay TV, and Digital Media.

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