Streaming Video Market: Rise of Hybrid Models

As the OTT streaming market matures, leading and niche services are evolving their strategies from a primary focus on building the customer base to one of profitability via revenue diversification and customer segmentation, at times via multiple brands. Services are leaning into business models that generate advertising revenues. At the same time, consumers are again showing an affinity to live/linear streaming models, after a decade of growing demand for video-on-demand.

In this report, Parks Associates assesses the state of the streaming market with a focus on shifting video consumption habits and the hybrid revenue strategies that services are employing to make the economics of streaming work. The report assesses leading company strategies and includes a 5-year forecast of OTT subscriptions and ad-based streaming service viewers in the US.

Purchase

Bottom Line

Shifting Market Dynamics

Linear Decline

Studio competition

Big Tech competition

Content bidding wars

FAST and AVOD

App roll-ups

Strategic Trends

Bundles: Parent Company Assets and Cross-Competitor Streaming Services

Revenue Mix Shifts: Ad Tiers and Third-Party Distribution

Carrier Subsidization and Perks

Connected TV Platforms

Tactical Initiatives

Market Outlook: Five-Year Forecast

SVOD Service Subscription Forecast, 2020-2029

Ad-supported Streaming Forecast, 2023-2029

Implications & Recommendations

Penetration of Traditional vs. OTT Video Services
Use of OTT Video Services in Past 30 Days, by Business Model
Video App Aggregation Examples
Streaming Video Service Use by Parent Companies
Reasons for Subscribing to Basic Tier with Ads by Services
Top Subscription Benefit Desired from Internet/Mobile Provider
Connected TV Platform of Households Primary CTV Device
Total SVOD Subscriptions in US Internet Households
Subscription Revenues from US SVOD Services
Ad-based Streaming Viewers in US Internet Households
Evolving Market Dynamics for Video Streaming Services
Top 18 Internet Service Providers, by Subscribers
Leading Streaming Service Net Promoter Scores: Basic vs. Premium Tier
Likelihood of Paying to Remove Ads from Free Ad-based Service
Interest in T-Commerce by Ad Relevancy Sentiment

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Yilan Jiang

Senior Director of Consumer Analytics

Author

@ YilanJiang

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Jennifer Kent

Vice President, Research

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@ JenniferMKent

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Sharon Jiang

Consumer Insights Manager

Author

@ SharonAtParks

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Yuting Mu

Consumer Insights Analyst I

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Ross Rubin

Sr. Contributing Analyst

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Video Services: OTT, Pay TV

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