Parks Associates (www.parksassociates.com) reports that over 60% of U.S. broadband households have at least one OTT video service subscription.
“The growth of OTT subscription services is amazing. Several notable OTT services launched during the past year, and more will be introduced in 2016. We expect to see a variety of new content options to meet all tastes, interests, and languages,” said Brett Sappington, director of research, Parks Associates. “Netflix, Amazon, and Hulu will continue to dominate this space in the United States, but the new entrants stand to make huge gains. Consumers are experimenting with different services. The market is very fluid right now, but in 2016, we will better understand the number of subscriptions consumers will be willing to maintain long term.”
Content will be key to attract the new video-centric consumer, and these emerging cloud-based businesses will be experimenting with different monetization models in 2016 and beyond, added Glenn Hower, Research Analyst, Parks Associates. Data analytics is one opportunity, but the challenge is turning data into a monetizable form, he said.