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Home Entertainment 2025: The Push for Profits

While Netflix sidesteps subscriber growth, the competition remains fixated on scale and sub gains as a means of increasing ad revenue (i.e. marketers), which they now see as a key component in their quest for profitability. And with good reason: Parks Associates reports that 57% of subscribers to major streaming platforms now choose ad-supported tiers.

One problem facing the FAST business is legacy television. At an OTT.X breakfast conference, Parks Associates president Elizabeth Parks pointed out that despite the erosion of the pay-TV business, 42% of households still have traditional pay-TV service, “and just as a point of reference, that’s about 48 million households that are still watching traditional TV — and then you have practically everybody watching streaming as well.”

“This creates a problem for advertisers,” Parks said. “The brands — they don’t know where to go to get the eyeballs, and they still are going to be centered on these millions and millions of households in one place versus hundreds of direct-streaming services. And that’s why I think, in 2025, we’re going to see a lot of consolidation and a lot of services coming together.”

From the article, "Home Entertainment 2025: The Push for Profits" by Erik Gruenwedel

Previously In The News

OTT Growing In Europe, US Continues To Pull Ahead

Parks Associates has published international data from the company’s OTT Video Market Tracker service showing OTT video usage in Western Europe is continuing to expand, with 55 per cent of UK broadban...

Netflix Leads US OTT Market

“Several factors contribute to OTT video service churn by consumers,” advised Brett Sappington, Senior Director of Research, Parks Associates. “In some instances, consumers are experimenting with new...

Gaming Console Adoption In Significant Decline

Parks Associates has published European research showing a steady decline in gaming console adoption in France, Spain, and the UK while remaining flat in Germany. Continued consumer adoption of mobile...

16% US Households Take OTT Sports

According to research from Parks Associates, 16 per cent of US broadband households have a sports OTT video service subscription. Although it does not stream live games, NFL Game Pass is the most high...

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