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Streaming wars will force media companies to choose between pricey subscriptions and ads

Parks Associates, a research firm that tracks the connected home, found in a recent survey that one-third of U.S. broadband households use a free, ad-based streaming service, up from 24% a year earlier.

“Consumers are turning to ad-supported streaming services as subscription fatigue continues to settle in,” Brandon Riney, a researcher at Parks, told CNBC in an email. “When discussing attitudes regarding ads on these streaming services, more consumers are willing to endure the ads to watch the content than completely resisting them.”

“As the purse strings of OTT consumers tighten, there is tremendous opportunity for free ad-based services to thrive,” wrote Steve Nason, an analyst at Parks Associates, in a post in November. “A service can establish a foothold in this space by delivering a unique offering of high-quality content in an engaging advertising-based environment.”

From the article "Streaming wars will force media companies to choose between pricey subscriptions and ads" by Megan Graham.

Previously In The News

Research: over 50% of U.S. broadband households stream content on TV screens

Parks Associates, a market intelligence and consulting company, yesterday released research showing that over 50% of U.S. broadband households stream content on TV screens. “For years, the televisi...

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Despite 2016 seeing virtual reality break into the mainstream market, headset manufacturers such as Sony, Oculus and HTC still have a lot of work to do in order to educate the masses, according to a n...

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A Comeback For TV Antennas S

In fact, since 2013, the percentage of broadband households in the nation using only antennas to watch linear TV has jumped from 9 percent to 15 percent, according to data released this month by Parks...

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