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Parks: 53% of U.S. Broadband Homes Subscribe to Pay-TV, OTT Video

1 Nov, 2017 By: Erik Gruenwedel

More than half of all broadband households in the United States subscribe to both pay-TV and at least one subscription video-on-demand service, according to new data from Parks Associates.

With more than 60 SVOD services launched last year and through the third quarter of 2017, there are at least 200 OTT video services active in the domestic market, with more than 100 active in Canada, according to Parks.

“Many OTT services are evolving to be complementary to the market’s largest players, instead of trying to compete directly against Netflix, Amazon [Prime Video], and Hulu,” Brett Sappington, senior director of research, said in a statement.

The analyst said that as consumers “self-aggregat[e] OTT and entertainment services, they are adopting primary entertainment content sources while supplementing with complementary video options.

More than 87% of domestic OTT video services and 86% in Canada offer subscription options today, including ad-supported, ad-free, and other options.

In addition, awareness of TV Everywhere has slowly increased, reaching 34% penetration by late 2016.

“Several factors are driving an increase in partnerships [between pay-TV and] OTT video services, including fragmentation of content, the success of bundling, polarization in the OTT subscription market, a low threshold for OTT service survival, and low awareness of many OTT service brands,” Sappington said.


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