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Home Entertainment 2025: The Push for Profits

While Netflix sidesteps subscriber growth, the competition remains fixated on scale and sub gains as a means of increasing ad revenue (i.e. marketers), which they now see as a key component in their quest for profitability. And with good reason: Parks Associates reports that 57% of subscribers to major streaming platforms now choose ad-supported tiers.

One problem facing the FAST business is legacy television. At an OTT.X breakfast conference, Parks Associates president Elizabeth Parks pointed out that despite the erosion of the pay-TV business, 42% of households still have traditional pay-TV service, “and just as a point of reference, that’s about 48 million households that are still watching traditional TV — and then you have practically everybody watching streaming as well.”

“This creates a problem for advertisers,” Parks said. “The brands — they don’t know where to go to get the eyeballs, and they still are going to be centered on these millions and millions of households in one place versus hundreds of direct-streaming services. And that’s why I think, in 2025, we’re going to see a lot of consolidation and a lot of services coming together.”

From the article, "Home Entertainment 2025: The Push for Profits" by Erik Gruenwedel

Previously In The News

Can Traditional TV Keep Up In A Digital-First World?

The ongoing disruption was made manifest in the number of consumers tuning into alternate channels: 63% of broadband-enabled households have at least one OTT subscription, according to research from P...

Report: Viewers Say Churn is Based on Lack of New, Original Content

According to Parks Associates, it only gets worse from here. In its 2022 “OTT Streaming Trends to Watch” white paper, their data shows that the average churn rate was 40% in 2020. Right now, the avera...

How fuboTV Plans to ‘Expand the Breadth of Sports’ to their Live TV Streaming Service

There are 75 million people in the US who have an MVPD service and based on the most recent Parks Associates report, 43% of cable TV households will likely switch to a virtual MVPD streaming service....

Percentage Of TV Antenna Households Doubles

The percentage of U.S. homes getting live TV channels through antenna has nearly doubled since 2013, to 15 percent of homes in 2016, according to Parks & Associates. Several factors contributed to the...

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