OTT

31% of U.S. Broadband Homes Have Multiple OTT Subscriptions

12% of those homes combine Netflix with Amazon 12/29/2016 9:21 AM Eastern

About 31% of U.S. broadband homes take multiple OTT service subscriptions, and nearly half of the 63% of U.S. broadband homes subscribe to at least one OTT service, Parks Associates highlighted in its latest OTT Video Market Tracker study.

 

Parks Associates noted that the most popular OTT service “stack” is Netflix and Amazon Video, as 12% of all U.S. broadband homes subscribe to that combo.

 

“Consumer willingness to subscribe to multiple services provides the consumer-paid revenues necessary for continued industry growth,” Brett Sappington, senior director of research at Parks Associates, said in a statement. “There are service stackers willing to experiment with different OTT combinations as new services arise,” Sappington said. “The regular release of high-quality original content, such as The Grand Tour (Amazon) and Gilmore Girls: A Year in the Life (Netflix), ensures the large OTT players will remain a core, consistent subscription among service-stacking households.”

 

The study also notes that U.S. consumers pay an average of $29 per month for incremental video-related entertainment that extends beyond traditional pay TV, and that U.S. broadband homes spent just 80 cents per month buying video downloads.

 

Parks Associates also found that average spending on subscription OTT video services has risen in the past four years.

 

“The average monthly spend of $7.95 on subscription OTT video services is remarkably close to the $7.99 pricing of the lowest tiers of service for Netflix and Hulu, indicating that consumer expectations for U.S. market pricing has been set by Hulu and Netflix,” Glenn Hower, senior analyst at Parks Associates, said. 

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