US broadband households interested in innovative offerings accessed via TV

Thursday, January 16th, 2020 
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25% of US broadband households use free, ad-based OTT services, and more than 25% are interested in innovative offerings accessed via TV

  • New consumer research examines demand for pay-TV features and subscription OTT video services

New research from Parks Associates finds over one-quarter of US broadband households are interested in innovative offerings accessed via television, such as offline viewing, video gaming, food delivery, ride sharing, and gambling.

Appeal of Pay TV Innovations - U.S.

The research, found in ‘360 View: Video Services & Connected Consumers’, also reveals that 25% of US broadband households have watched video on a free, ad-based OTT service in the past 30 days, although no single service dominates this market. Among the leaders, 7% of US broadband households use The Roku Channel, 6% use Pluto TV, and 6% use Crackle.

“Entertainment and communication features like offline viewing are becoming an important part of consumer viewing habits, especially for younger generations. Nearly 50% of current pay-TV subscribers have a DVR,” said Elizabeth Parks, President, Parks Associates. “VOD and DVR are key elements in operator video strategies now that OTT on-demand services are mainstream. TiVo announced a 4K streaming device at CES that aggregates where content can be accessed from, putting an emphasis on search and discovery and an integrated experience for the consumer.”

‘360 View: Video Services & Connected Consumers’ examines adoption of and demand for pay-TV features, including premium channels, recorded and on-demand video, multiscreen accessibility, content discovery, and newly emerging CPE and service experiences. It helps better understand the portfolio decisions of consumers across all areas, including pay-TV, OTT, and over-the-air.

“Consumers and their entertainment choices remain the key driver of change within the entertainment industry,” said Steve Nason, Sr. Analyst, Parks Associates. “At CES, Quibi, led by Meg Whitman and Jeffrey Katzenberg, announced a mobile-only service featuring short-form content and subscription tiers with and without advertising, which will target younger, more mobile consumers.“

‘360 View: Video Services & Connected Consumers’ includes the following key findings:

  • One-third of broadband households are interested in vMVPD service bundles.
  • One-in-five pay-TV subscribers claim that they can access an OTT service via their channel guide or on-screen menu.
  • One-third of broadband households have trialed an OTT subscription service in the past six months.
  • 26% find purchasing items seen in advertisements appealing or very appealing.
  • 31% of US broadband households subscribe to HBO, the market leader in premium channels.
  • One-quarter of US broadband households use an antenna to watch live TV channels.
  • Overall 78% of broadband households watch live TV channels.

Links: Parks Associates