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Almost 60% of Broadband Households Subscribe to Netflix, Amazon or Hulu

12 Jul, 2017 By: Erik Gruenwedel

When it comes to subscription video, it’s Netflix, Amazon Prime Video, Hulu or bust. New data from Parks Associates says just 6% of domestic broadband homes subscribe to over-the-top video services in addition to those three. Another 3% subscribe to one or more sports video services, including MLB.TV, NFL Game Pass, NBA League Pass or WWE Network.

Analysis of market trends involved more than 100 OTT video service providers in the United States and Canada.

“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,” senior analyst Brett Sappington said in a statement.

Sappington said ongoing proliferation of SVOD (spurred by low cost and no long-term contracts) finds 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 revenue.

Crunchyroll and WWE Network are examples of niche platforms that have grown substantial sub bases significantly altering content offerings from Netflix, Amazon and Hulu. Crunchyroll reported more than one million global subscribers as of February, while WWE Network had 1.95 million global subscribers following WrestleMania 33 in April.

“[The services] 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,” Sappington said.

Parks contends 65% of U.S. broadband households subscribe to at least one OTT video service. However, the firm notes that household penetration is slowing and that growth areas are in multi-subscription households and older consumers adopting services.

“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,” said senior analyst Glenn Hower.

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