Nearly Six in Ten Broadband Households Subscribe to Netflix, Amazon or Hulu OTT Video

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The latest over-the-top (OTT) video services market research from Parks Associates reveals the extent to which just three providers dominate the U.S. market. Just shy of six in ten (59%) U.S. broadband households subscribe to Netflix, Amazon or Hulu, according to Parks’ latest Video Market Tracker. Just six percent subscribe to another over-the-top (OTT) video service without also subscribing to one of the top three.

Overall, 65 percent of U.S. broadband households subscribe to at least one OTT video service. Household penetration is slowing, however; Parks highlights. The greatest growth currently is in multi-subscriber households and among older adults.

Broadband Households Subscribe to Netflix

“One-third of broadband households subscribe to multiple OTT services,” said Glenn Hower, Senior Analyst, Parks Associates. “With competition set to intensify, services will begin to focus on niche segments beyond young consumers, offering unique content and services in order to capture any remaining untapped portions of the market.”

Parks covers more than 100 OTT video service providers across the U.S. and Canada in producing its OTT Video Market Tracker service. Also among the latest market research results, Parks found that three percent of U.S. broadband households subscribe to one or more OTT sports video services, such as MLB.TV, NFL Game Pass; NBA League Pass or WWE Network.

U.S. viewers are doing more in the way of shopping for new and interesting video content and programming amid a still growing wave of new digital video content production, creation of new programming market niches and fragmentation of traditional mass audience markets, researchers said. “U.S. consumers are not taking solely a Netflix, Amazon, or Hulu subscription. Many are shopping around and trialing new services to get access to interesting content unavailable through the big services,” said Parks Associates’ senior research director Brett Sappington.

Subscriber growth among cable and other traditional pay-TV providers has been flagging, but overall subscriber numbers – when OTT video services are included – are on the rise, Sappington highlighted. “Interest and viewership in OTT video services have led to an increase in total subscriptions since 2015, including an increase in households subscribing to two, three, or even four or more services. All this translates into more money being spent by consumers and more opportunity for niche content services to capture revenues.”

Parks singles out Crunchyroll and WWE Network as examples of OTT video service providers successfully capitalizing on traditional cable and broadcast TV niche markets. Crunchyroll reported having a global subscriber base numbering more than 1 million as of February. Some 1.95 million OTT WWE Network subscribers reportedly watched WrestleMania 33 in April, Parks points out.

“Crunchyroll is a great example of a niche OTT video service that understands effective niche-oriented competition,” Sappington said. “They understand their target segment extremely well, and they have crafted an experience that caters to that audience, including forums and events to foster a user community.”

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