Seven Percent of U.S. Households Have Broadband, OTT but No Pay TV

  • Parks Associates
DALLAS, TX — Global OTT video service subscription revenues will increase from nearly $9 billion in 2014 to over $19 billion in 2019, according to new industry research from Parks Associates, a market research and consulting company specializing in emerging consumer technology products and services.. Currently, 57 percent of U.S. broadband households subscribe to an OTT video service. Among European broadband households, 57 percent in the U.K., 29 percent in Spain, and 24 percent in Germany subscribe to an OTT service.

The industry report TV Everywhere and the New World of OTT also finds that in 2015, approximately 7 percent of all U.S. households, or 8.4 million households, subscribe to broadband and at least one OTT video service but do not subscribe to pay TV. This figure includes consumers who have discontinued pay-TV service and those who have never subscribed to pay TV. In other Western nations, this same figure is approximately 4 percent or less among all households. Operators are introducing their own OTT services to appeal to consumers who are not currently taking pay TV.

Parks-Associates--Consumers-w-BB-OTT-without-Pay-TV

"The OTT video services marketplace continues its rapid rate of change, impacting the video ecosystem across world markets," said Brett Sappington, director of research, Parks Associates. "While operator attempts at TV Everywhere have made little impact, OTT video services are experiencing a boom. A variety of new players are entering the market, and operators including DISH Networks, Rogers Communication, Bell Canada, and Sky are responding with OTT video services of their own. How the industry responds to this change will ultimately affect the fundamental structure of the video industry for years to come."

The Parks Associates OTT report examines the current and future market environment for video services that provide consumers with access to TV and programming via Internet-connected devices. It examines the relationship between TV Everywhere and OTT services, consumer demand and habits, business models, emerging services, threats, success factors, and future growth.

"Avid video consumers are still taking pay-TV services if they can afford them. However, companies in the video ecosystem are eager to reach those consumers who are currently falling through the pay-TV cracks," Sappington said.

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