Consumers Love OTT Services

by Elizabeth Parks | Dec. 17, 2021

The world of OTT services continues to change but no doubt consumers are finding value and experimenting. Parks Associates latest reports that based on quarterly surveys of 10,000 US broadband households, more than 80% of broadband households have at least one OTT service and that the churn rate for OTT services is 44%, with consumers adopting multiple subscriptions and experimenting with different services.

Parks Associates notes the 2021 Top 10 OTT List shows the first change in the top three services since the firm started tracking these providers in 2015. Disney+ has moved into the top three, moving ahead of Hulu in number of subscribers.

“While the Disney+ content portfolio may have allowed it to leapfrog stablemate Hulu in 2021 rankings, its position reaffirms the collective power of the Disney Bundle triumvirate: Hulu, Disney+, and ESPN+,” said Paul Erickson, Director of Research, Parks Associates. “ViacomCBS’s successful rebrand and content-fueled reformulation of CBS All Access into Paramount+ have allowed it to leapfrog Apple TV+ into seventh place behind ESPN+, and time will tell if the service will break into the Top 5.”

HBO Max moved into the top five, while Paramount+ (rebranded from CBS All Access) jumped to number seven on the list, while new entrant Discovery+ is right behind in the eleventh position.

2021 Top 10 US Subscription OTT Video Services (SVOD)

  1. Netflix
  2. Prime Video
  3. Disney+
  4. Hulu
  5. HBO Max
  6. ESPN+
  7. Paramount+
  8. Apple TV+
  9. Starz
  10. Showtime

 

Parks Associates' research closely tracks the adoption of broadband, OTT services, and pay TV among all US households. “Broadband providers added an estimated 6.4 million residential customers to date in 2021, showing rapid growth,” said Kristen Hanich, Director of Research, Parks Associates. “The importance of bundling pay TV with home broadband is diminishing though – our Home Services Dashboard finds that only 38% of US broadband households bundle pay TV with their home internet service, a significant decline from past levels.”

The role of online TV continues to grow, with consumers embracing OTT services offered by familiar providers. “In Q3 2021, 19% of US broadband households reported subscribing to a vMVPD service, nearly double from the previous year,” said Eric Sorensen, Contributing Senior Analyst, Parks Associates. “By 2024, the US vMVPD subscriber base will increase to more than 23 million households. All players will continue vying for the leading positions.”



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