While the implications of OTT on pay-TV and broadcast TV continue to be debated, more than half of consumers (57 percent) in U.S. broadband households pay for OTT (over-the-top) video services, such as Netflix or Hulu Plus, according to new market research from Parks Associates. In addition, Parks found that on average U.S. broadband households spend $9 per month on Internet video, up from $7 monthly in 2012.
Americans have been watching more video as the number of viewing “channels” and device options has expanded, Parks notes. “The number of hours watching video content continues to rise, exceeding 36 hours per week in 2014, with Internet video accounting for 37% of that time, or approximately 13.3 hours a week.,” Parks’ Director of Research Brett Sappington was quoted in a press release.
“Rather than cannibalizing the consumption of broadcast, pay-TV, and packaged media content, Internet video is increasing overall consumption levels for video.”
Other highlights of Parks’ latest research include:
- Nearly 50 million streaming media players will be sold worldwide in 2017;
- Homes with children spend on average 90% more on OTT services and digital video than homes with no children;
- More than 75% of streaming media player owners have an OTT subscription.