Consumer Analytics

OTT Service growth is primarily driven by service stacking

by Keshav Jaiswal | Apr. 11, 2019

While overall subscription growth of OTT services was relatively modest between 2017 and 2018, households subscribed to multiple services at higher rates. The segment of households subscribing to three or more services rose 29% between 2017 and 2018, and it increased by 267% since 2014.

This signals that more households are finding value in subscribing to multiple OTT services, even as overall adoption of OTT shows slowing growth. While there is undoubtedly a ceiling to how many services households will pay for, it appears we have not yet reached the ceiling.

Increasingly, consumers are compiling their own bundles of video options by choosing among the OTT video options available. This OTT self-aggregation occurs across OTT service business models. While 22% of broadband households subscribe to three or more OTT services, that figure increases to 27% when considering all other business models. This segment of subscribers has a different approach for adoption of OTT services, yet they subscribe to pay-TV at a similar rate to overall broadband households.

For more information on this topic, see Parks Associates’. 360 View: Digital Media and Connected Consumers. This study identifies the most popular devices for watching internet video, consumers’ internet video subscription habits, and compares spending on internet and home videos. The study also examines popularity of OTT services and the biggest movers in the industry.

Number of OTT Service Subscriptions | Parks Associates




Keshav Jaiswal

Keshav Jaiswal

Researcher

Keshav studies market trends and consumer behaviors related to the use of smart home and entertainment technologies. Keshav’s work with the Consumer Analytics team includes primary and secondary research, where he focuses on finding data-driven solutions from syndicated and custom survey data.

Keshav Jaiswal graduated from University of Texas at Dallas with a Master of Science degree in Business Analytics specializing in Marketing and Research. He also holds a bachelor’s degree in Computer Science and Engineering.
 

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