Parks Associates: Average Household Monthly Expenditure on OTT Services
The average US household spend on OTT services has doubled in two years.
According to Parks Associates, US broadband households spent an average of US$16 per month on OTT services in early 2020, double what they spent in 2018. Spend was largely flat between 2014-18, with the average amount being spent fluctuating between US$6-8. It was only in 2019 when there was a massive surge in OTT spend, jumping up to US$14 per month.
The research firm also found that 45% of households with traditional pay TV said that they are likely to switch to a virtual multichannel video programming distributor (vMVPD) in the next 12 months.
Paul Erickson, senior analyst, Parks Associates, said: “Today’s video services market is in a historic state of disruption and disarray. Our Q3 2020 survey finds 29% of current subscribers to traditional pay TV are unhappy with the price and value of their service, and vMVPDs are seeking to address that need with a variety of different bundles and value propositions.”
