Study: 11% of Homes Rely on Shared OTT Video Accounts

57% of U.S. Broadband Homes Use OTT Video Services, Says Parks Associates
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Nearly 60% of U.S. broadband homes use over-the-top video services, but account sharing is becoming increasingly prevalent, Parks Associates found in a recent study.

According to the Q3 2014 survey of U.S. broadband households, 57% of them access an OTT video subscription, but 8% are using credentials held by someone outside their home, and 6% are exclusively using shared accounts to access subscription OTT video content.

The finding equates to 11% of all households that are relying exclusively on shared accounts when using subscription-based OTT services, said the research firm, which will expand on the consumer demand for OTT and discuss revenue service strategies at its CONNECTIONS: The Premiere Connected home Conference, set for May 19-21 in San Francisco.

Boiled down by service, Parks said its research has also found that 11% of Netflix subs, 10% of Hulu Plus customers, and 5% of Amazon Prime Instant Video customers are using an account paid for by someone else.

Perhaps unsurprisingly, account sharing is highest among younger households, where 22% of those 18-24 who use an OTT service use a subscription paid by someone outside of their household, Parks found.  

“OTT video accounts for a disproportionate amount of content consumed when compared to expenditure—over one-third of video consumed per week is OTT, but it is only 9% of the household video budget,” Brett Sappington, director of research at Parks Associates, said in a statement. 

MVPDs, he added, “will have to quickly move up the OTT learning curve, which is very different from the traditional pay-TV environment,” Sappington added.

Some pay TV providers are already taking heed by embracing OTT through the integration of services such as Hulu and Netflix into their respective set-top box platforms.