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December 15, 2020


20% of US broadband households use ad-supported OTT services, and 15% use freemium services

Crunchyroll, MediaKind, Roku, Tubi, XUMO, and more share insights at Future of Video

Parks Associates OTT research finds 20% of US broadband households currently use an ad-supported OTT service and 15% use a “freemium” service, placing these offerings in a strong second place, behind OTT subscription services, among business models. The research firm will feature its new data, speaker Andrea Clarke-Hall from Tubi, Inc.,and a live panel on the “Rise of Ad-based OTT Services” this week at the third annual Future of Video: OTT, Pay TV, and Digital Media.

“There is no clear market leader in the ad-supported and freemium OTT space, with Pluto TV, The Roku Channel, Tubi TV, Peacock, and Crackle all scoring relatively similar adoption rates,” said Steve Nason, Research Director, Parks Associates. “The newest offering, NBCUniversal’s Peacock, does have the reach, content, and profile to disrupt this area, which could further boost usage of ad-based and freemium OTT among US households.”

Parks Associates research finds US broadband households in Q1 2020 report spending an average of $16 per month on OTT video service subscriptions, behind $89 per month on pay-TV services. Consumer spending has been shifting toward OTT services and subscriptions as more households cut or trim their pay-TV services.

“A prolonged economic contraction could drive households to reduce pay TV spending more, while also scrutinizing their OTT service stacks,” Nason said. “Ad-based services will establish a large role within the today’s OTT service space as consumers look for affordable entertainment options.”

At Future of Video, Parks Associates highlights in-depth consumer and industry research on OTT services, the value of content, technology innovations, and best strategies for building successful video services. Event sponsors include Salesforce, Comcast Technology Solutions, ContentWise, Verizon Media, You.i TV, Amdocs Media, Penthera, and Verimatrix.

The virtual session “Rise of Ad-based OTT Services” examines the key factors that have driven the growth in ad-based services, how they fit within the today’s OTT service space, and how they will evolve.

Featured executive speakers for the session:

  • Andrea Clarke-Hall, VP of Business Development, Tubi, Inc.
  • Henry Embleton, Head of Ad Products & Revenue, Crunchyroll
  • Paul Finster, VP, Innovation & Webscale Sales, MediaKind
  • Stefan Van Engen, Senior Vice President, Content Programming and Partnerships, XUMO
  • Jennifer Vaux, Director, Programming Acquisition, The Roku Channel, Roku Inc.

For information on registration or press passes, contact Rosey Ulpino, rosey@parksassociates.com, 972.996.0233.

About Future of Video: OTT, Pay TV, and Digital Media

Future of Video: OTT, Pay TV, and Digital Media brings together senior leaders to share insights on new trends in the video and connected entertainment industries, with insights on consumer adoption, churn, and spending. The event provides insight into successful OTT strategy deployments, challenges for pay-TV providers, the role of connected CE in the growth of video viewing, new content formats, and the overall impact to the video market.

Future of Video addresses new strategies for cableco, OTT, and mobile service providers to provide high-quality customer service, retain subscribers and attract new customers, and design bundled options through new distribution strategies.

Future of Video takes place virtually on March 31, May 5, June 9, July 28, October 6, and December 14-15, 2021. For more information, visit www.futureofvideo.us.