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Parks: 31% of U.S. Broadband Households Subscribe to More than One OTT Video Service

January 3, 2017 By Barb Ostrander in
  • Broadband
  • Telecom

Amazon Prime, Netflix, Hulu – it seems any one OTT video service isn’t enough to meet the need of U.S. viewers. Nearly one third of U.S. broadband households (31%) subscribe to more than one OTT video service, according to according to new market data from Parks Associates’ OTT Video Market Tracker.

That’s about half of U.S. broadband households, considering that broadband households comprise 63% of total households nationwide. Parks uses the term “service stackers” for households that subscribe to more than one OTT video service.

Twelve percent of U.S. broadband households subscribe to both Netflix and Amazon Video, the most popular combination of stacked services, the market research specialist highlights in a news release.

Why Households Subscribe to More than One OTT Video Service

Viewers’ willingness to pay for more than one OTT video service bodes well for industry growth going forward, according to Parks’ senior director of research Brett Sappington.

“The average spending on subscription OTT video has increased over the past four years, with a notable jump in 2016,” added senior analyst Glenn Hower.

“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.”

U.S. OTT video subscribers are showing a willingness to experiment with different combinations of services as new market entrants begin offering services, Sappington noted.

“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,” he added.

Looking ahead, Parks points out that 2017 may be the year the market leader launches its offline viewing service.

Additional highlights from Parks’ latest OTT video market research include:

  • U.S. consumers pay an average of $29 per month for incremental video-related entertainment beyond pay TV.
  • U.S. broadband households spent only $0.80 per month buying video downloads.
  • The movie industry saw consumers spend an average of $9.32 per month buying movie tickets for the cinema.
  • Online TV services and live broadcasts of linear channels will be a common theme in 2017, with several new services scheduled to launch, including options from Hulu and YouTube.