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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

Cutting the Cord: Next year will bring even more streaming options

Amazon and Hulu, which has joined Netflix and Amazon as a creator of its own original content, will retain their solid spots as Nos. 2 and 3 in streaming subscriptions. The top three services have "to...

Cutting the Cord: What won't happen in 2016

Parks Associates research analyst Glenn Hower is prepared to be proved wrong, but he remains skeptical about an Apple streaming entry. "With Sling TV and PlayStation Vue in the market, Apple is now pl...

Everybody’s Doing It: How People Use Their Smartphones

Smartphones owners can’t keep their content on their phone, a Parks Associates survey of broadband households found. Thirty-five percent of smartphone owners stream music to speakers, and 24 percen...

IoT-Ready Smart TVs: What's The Potential?

Barbara Kraus, Parks Associates director of research, also sees potential. “There are a number of potential use cases for the TV as a smart-home controller,” she said. “The TV display can be used as a...

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