Stop us if you’ve heard this one before: Streaming services are popular in the United States, and consumers are taking up multiple SVODs to build their own channel bundles.
It’s a recurring narrative, but new numbers from Parks Associates still stand out in terms of how fast the market is maturing. According to the research firm, nearly 40% of U.S. broadband households now have at least two OTT video service subscriptions.
The numbers build on figures Parks put out in December saying that more than 50% of U.S. OTT subscription households subscribe to multiple OTT video services, up from only 20% in 2014.
Parks said the rise is due to consumers hitting a “new stage in connected entertainment” where OTT video is standard and experimenting with multiple services is no longer a big deal.
“Every product or service has a natural market lifecycle that reflects the state of adoption, competition, and market development,” said Brett Sappington, senior director of research at Parks Associates, in a statement. “OTT video is no exception, with services evolving to keep up with a fast-moving market. Netflix, Amazon, Hulu, and other players have moved from simple subscription-based services to creators of award-winning original content such as House of Cards, Manchester by the Sea, and The Handmaid’s Tale. Understanding the lifecycle of OTT video services allows market participants to better position their offerings and market strategy both for today and for the future.”
The firm said that 69% of U.S. broadband households have an OTT subscription and that households that subscribe to three or more internet video services are one of the fastest growing segments in the U.S. OTT space. In the past 30 days, nearly one-half of U.S. broadband households have accessed video content from a subscription OTT service, according to Parks Associates.