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.