The number of households with two or more OTT subscriptions has increased by over 130% in the past five years, claims a new report.
According to research from Parks Associates, 46% of US broadband households subscribe to multiple OTT services, compared to 33% in 2017 and 20% in 2014.
The report, Partnering, Aggregation, and Bundling in Video Services, looks at the evolving dynamics of partnerships, aggregation, and bundling that are developing in the industry. It also examines the evolution of entertainment brands and profiles the leading online aggregation platforms available to video services today.
However, the report points out that while overall adoption and awareness of OTT video services as a category are high, awareness of any specific individual service is low.
Steve Nason, senior analyst at Parks Associates said: “The number of OTT services available in the US increased by 140% in five years, giving consumers an unprecedented number of options to meet their video needs. Most OTT households are anchored by one of the three major OTT services – Netflix, Hulu, or Amazon Prime Video – but consumers are finding they can’t fulfill all their interests through a single service. Many small and medium-sized services are building their brand and subscriber base by filling in these gaps in content.”
The research also shows that nearly three in 10 OTT services in the US are on Amazon’s Prime Video Channels aggregation platform, more than four times the rate from two years ago.
Nason said: “Netflix can afford to license high-value content like Seinfeld to supplement its original content, and Apple can buy commercial space during the Emmys and NFL games to promote its upcoming Apple TV+ service and its array of content and stars.
“By contrast, smaller OTT services are having to harness the power of a partnership with an aggregator, bundling or content partner, or marketing and promotion partner to boost awareness of their brand and offerings.”
In total, 53% of US broadband households subscribe to at least one OTT service and a pay-TV service and that nearly three-quarters subscribe to an OTT service.
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24th May 2020