Many CDG clients offer video and there are dramatic changes happening to the overall video business. OTT video is disrupting the traditional pay-TV business and subscribers are spending their video dollars differently.
Consumers are embracing subscription OTT services like Netflix, and more are on the way as a result. Subscriptions now account for almost 86% of all spending on over-the-top (OTT) video, up substantially from just over half in 2012, according to an OTT video spending report from Parks Associates.
In a newly announced study, the research firm tracked market trends and profiled OTT video service providers in the US and Canada, including Netflix, HBO, YouTube, and Amazon as well as new services Disney+ (Walt Disney Co.), HBO Max, and Apple TV+.
The new services will prompt consumers to increase spending on internet video and maximize the proportion of spending on subscriptions, the research firm added. The increasing number of new services will also test consumers’ video content expense tolerance. “The amount of money consumers spend per month will spike, at least in the short term, as new services such as Disney+ and Apple TV+ become available. Tradeoff decisions will come later,” said Brett Sappington, Parks Associates senior research director and principal analyst, in a press release “To keep consumers spending at this higher level, services will have to consistently deliver volumes of compelling content within an engaging user experience.”