Providing market intelligence for more than 35 years

In The News

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

For Apple TV, The Price Is The Problem

In late 2014, Amazon launched the Fire TV Stick for $40. Compared to the $100 Fire TV box that launched earlier that year, the Stick had significant performance hiccups, and the first version of its r...

Industry Voices—Sappington: A new generation of data and its impact on traditional players

Among US broadband households, Parks Associates finds that 72% subscribe to at least one over-the-top (OTT) video service, while 46% subscribe to two or more OTT services. Further, 25% subscribe tothr...

Streaming is heading toward a breaking point with consumers

However, while work on that puzzle continues and multiple companies look for a way to get streaming subscribers to stay in one place, customer churn is still high. Or, as Parks Associates describes it...

Cirrent Will Connect Your Smart Home Devices To The Internet Right Out Of The Box

As smart home technology gets smarter, so should the way in which these innovative devices connect to the internet. Enter the San Mateo-based company Cirrent and its newly minted automatic connection...