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The Rise Of OTT Services In America

How are you getting your video content these days? In 2017 buying cable or satellite video for your video services is no longer the given option. With so many over-the-top (OTT) services like Netflix, Amazon and Hulu offering premium content at competitive prices the video services market is providing consumers with more options than ever before—and consumers are taking advantage of the saturated market.

Before diving into the specifics of the report it is important to define what OTT means. Over-the-top services, or OTT as they are more commonly known, refers to audio, video or other media services that are transmitted via the internet without having to go through a cable or satellite operator.

Parks Associates’ latest OTT Video Market Tracker study provides new insights into the success and popularity of OTT services in the United States. According to the study, close to half of the 63% of U.S. broadband homes subscribe to at least one OTT service. The average monthly spend on subscription OTT services has risen over the last four years to $7.95; a number that is suspiciously close to the lower tier prices of Hulu and Netflix, which sit at $7.99. These numbers allow one to conclude that the OTT market has been so dominated by Netflix and Hulu that they are actually shaping consumer expectations for the OTT space in the United States.

Perhaps the most interesting statistic to come out of the Video Market Tracker study is the amount of households that are subscribing to two or more OTT services. Over the last year 31% of U.S. broadband homes subscribe to multiple OTT services. The fact that consumers are so willing to pay for multiple OTT services ensures that the OTT space will grow in 2017 as it continues to be pushed forward by consumer-funded revenue.

It’s also interesting to note that the most popular OTT service combination is Netflix and Amazon Prime’s video library with 12% of all U.S. broadband homes subscribing to that combination of services. According to the report the top 10 OTT services in the United States are:

  1. Netflix
  2. Amazon Video (Amazon Prime)
  3. Hulu
  4. MLB.TV
  5. WWE Network
  6. Sling TV
  7. HBO Now
  8. Crunchyroll
  9. Showtime
  10. CBS All Access

The OTT Video Market Tracker study by Parks Associates confirms the notion that OTT services are growing in popularity and hot on the heels of industry giants like cable and satellite television. This growth is expected to continue over the next year and is certainly a space to keep a close eye on.



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