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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

Parks Associates: Amazon Grows Share of Streaming Video Players, Roku Maintains Lead

As the percentage of U.S. households that own streaming media players climbed to nearly 40 percent at the beginning of 2018, Roku managed to maintain its lead in market share while Amazon is gaining g...

Instant View: Federal Judge OKs AT&T Takeover of Time Warner

BRETT SAPPINGTON, DIGITAL ENTERTAINMENT RESEARCH DIRECTOR, PARKS ASSOCIATES, DALLAS: "If you're AT&T, who do you want to include in your own skinny bundle? The channels you own. This means if you'r...

Esports Invasion: Overwatch League Finds Distribution on Disney XD, ESPN

It’s further evidence of the gap between esports and the mainstream coming to a close. The demand for esports content is only rising, with 10% of US broadband households watching it, according to rece...

Parks Associates: Nearly a Third of Netflix Subscribers Opt for Premium Tier

Parks Associates Senior Director of Research Brett Sappington pointed out that the services premium tier offers up to four concurrent streams and access to Ultra HD viewing, while the basic option onl...

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