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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

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Parks Associates estimates that 30% of Netflix (NFLX) subscribers are getting the premium service tier, up from 21% in late 2017. Meanwhile, the share of subscribers getting the lowest-priced tier has...

The Challenge For Smart Home Companies: Getting A Foot In The Door

But many consumers are leery. News articles questioning the privacy and security of home networks and connected devices, including always-listening smart speakers, have put off potential buyers. The s...

How Many Streaming Video Choices Are Too Many With Netflix, Amazon, Apple, Disney — And More?

Consumers who dreamed of the a-la-carte TV future might soon wish for a return to the good old days when cable and other pay-TV services packaged channels of programming for them. "We're about to t...

Samsung, ADT team up on home security kit, competing with Nest

Only about 22 percent of U.S. homeowners have a professionally monitored home-security system, and most of those have been installed by the companies, said Parks Associates senior analyst Brad Russell...

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