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Analysis: Fragmentation built streaming’s growth and now tests its limits

Parks Associates counted more than 300 streaming services available in the United States, with the average internet household subscribing to 5.3 of them.

For most of television’s history, the limiting factor was supply — channels, time slots, shelf space at the video store. The limiting factor now is attention, and the search bar is where it leaks out.

Parks Associates has a term for the result: fragmentation fatigue.

Pay TV, long treated as the past, is being repositioned as part of the cure. Parks Associates found that 33% of pay TV subscribers stayed because the service offered more content in one place. Bundles follow the same logic.

The trade once thought unthinkable, more ads for less money, has become a routine way to manage a crowded bill.

“Aggregation is now a strategic advantage,” Elizabeth Parks, president and CMO of Parks Associates, said.

From the article, "Analysis: Fragmentation built streaming’s growth and now tests its limits" by Dak Dillon

Previously In The News

Is The Increasingly Crowded Streaming Marketplace Going to Turn Consumers Back to Piracy?

In the short term, consumers are more than happy to keep paying for multiple services. According to a report published by Parks Associates in June 2021, 46 percent of US homes with broadband-level Int...

Samsung’s Peacock Standoff with NBCUniversal Shows Power of TV Makers

Smart TVs are gradually becoming more common than separate streaming devices. As of the third quarter last year, 56% of households with broadband owned smart TVs while 43% owned streaming devices, acc...

Netflix powers up theChive to promote Marvel's 'Iron Fist'

Streaming video overall is coming from a place of strength. Netflix’s customer growth from last year’s Q3 exceeded expectations, and separate reports from January found streaming and over-the-top serv...

Content providers will take control of their OTT future

The global OTT devices and services market is expected to grow at a CAGR of 20.6 percent between 2016 and 2020, according to the latest report from Research and Markets. In Western Europe, in particul...

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