Wednesday, March 20, 2019

Average household spending on subscription OTT streaming services has held steady for the past three years

Webcast from Parks Associates and Swrve analyzes key strategies to design successful OTT services

Parks Associates’ OTT video research finds household spending on subscription OTT video services has held steady for three years, averaging just under $8 per month since 2016. Given the growing adoption of OTT video services over the past three years, these figures suggest that adoption of multiple services or expensive services by some consumers is offset by a larger base of consumers who either subscribe to one or two relatively inexpensive services, including 30 percent of consumers who do not spend any money on OTT video services. Parks Associates will discuss strategies to launch successful services in the complimentary webcast “Avoiding OTT’s Top 5 Mistakes,” co-hosted with Swrve on Tuesday, March 26, at 11:00 A.M. CT.

Average Monthly Expenditure on Videos | Parks Associates

“The stability in average household spend belies the activity going on under the surface,” said Brett Sappington, Senior Director of Research, Parks Associates. “2019 may be poised to break that trend. Netflix, Hulu, and Amazon continue to pack on new subscribers. At the same time, services like ESPN+ are also experiencing phenomenal growth, and new offerings from Disney and WarnerMedia are set for release later this summer. One of three things will happen—more households will become OTT streaming households, rival services will begin to pull subscribers away from Netflix, or that spending number will go up.”

"The deluge of OTT platforms has created greater competition for video based on choice and quality of content. Yet as people spend more and more time consuming digital media, OTT platforms are seeing a lag in customers insights, loyalty, and revenue,” said Barry Nolan, Chief Strategy Officer at Swrve. “We believe that by delivering the perfect message at the perfect time, OTT platforms will have a richer and more enduring experience with their customers."

The webcast will identify the top five mistakes that OTT providers can make when planning, designing, and deploying their services. Sappington and Nolan will discuss strategies for companies to overcome challenges related to churn, marketing, and content and service offerings.

Webcast Topics:

  • Lessons learned from successful and unsuccessful services
  • Key issues that many OTT services overlook
  • Potential obstacles that can inhibit growth
  • Understanding buying, churn, and viewing behaviors of today’s consumers
  • Ways to drive successful service growth
     

Go to http://www.parksassociates.com/ott-mar2019 to register for this webcast. For more information, contact sales@parksassociates.com. To schedule an interview with an analyst or to request specific research data, please contact Elizabeth Parks at eparks@parksassociates.com, 972-996-0202.

About Swrve

Swrve is the marketing and customer engagement platform that helps leading brands confidently scale communications over millions of customers in real time. A Gartner Magic Quadrant for Mobile Marketing Platforms leader, Swrve is currently installed in 3.5 billion apps worldwide and processes 14 billion events daily.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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