Broadband TV News

Nearly 50% of US broadband homes use OTT video

January 05, 2014

Subscribers of OTT services spend more per month renting and buying video downloads than the average household, which contributes to the success of Amazon’s business model of integrating transactional services with its Amazon Prime subscription service.

Two-thirds of Amazon Prime Instant Video subscribers use Amazon transactional service, according to Parks Associates.

“The role of OTT content in the connected home and its impact on other services will be key topics at the Connections Summit and CES 2014,” said Brett Sappington, director, research, Parks Associates, who will also participate in Broadband Unlimited at CES, in the sessionConnected TVs and the Re-Making of an Industry.

“Our research shows roughly 50% of US broadband households use subscription or transactional OTT video and OTT users spend more on video in general than the average household. Not counting pay-TV services, OTT subscribers spend $67 per month on video versus $40 on average for all U.S. broadband households. The overwhelming majority of OTT users also have pay-TV service.”

“Amazon Prime subscribers report their expenditure on rented and purchased downloads is increasing,” said John Barrett, director, Consumer Analytics, Parks Associates. “Netflix subscribers are more likely to say expenditure in all other categories has decreased—a fact that may reflect Netflix’s reliance on a single revenue model. Redbox Instant subscribers, conversely, are more likely to say expenditure is increasing in all categories.”

Connections Summit at CES 2014 features consumer research and business strategies on smart home services, Internet of Things, connected CE, and tech support.

From the article, "Nearly 50% of US broadband homes use OTT video" by Robert Briel.

Previously In The News

Amazon gains traction in US connected homes

Amazon has made significant gains in the OTT video market as nearly 20% of all US broadband households now have an Amazon Prime Instant Video subscription, according to Parks Associates. The Q1...

Young viewers are key segment to target for OTT

Parks Associates reports pay-TV penetration remains fairly steady at around 85% of US broadband households but OTT video use is increasing on multiple devices, particularly with younger viewers....

4K TVs will follow faster growth pattern than HDTVs

4K TVs will follow a similar, but faster, growth pattern as HDTVs, which have reached 82% of US broadband households after 15 years on the market. The research 4K Today: Bringing Ultra HD to Ma...

Young consumers prefer online video

Over 50% of US broadband households now use paid OTT video services, either subscription or transactional, according to research from Parks Associates. The firm also notes 37% of consumers 18-2...

‹
1
2
3
4
5
6
7
›