Over 50% of U.S. households now combine a Big 3 SVOD service with at least one otherMonday, September 13th, 2021
More than 50% of households now combine a Big 3 service with at least one other subscription OTT service
DALLAS — Consumer data from Parks Associates reveals 54% of US broadband households now combine one of the Big 3, Netflix, Amazon, and Hulu, with at least one other subscription OTT service.
Currently, 82% of US broadband households subscribe to an OTT service, and OTT service stacking has grown exponentially as new services such as Paramount+ emerge with low price points. As cord cutters migrate away from traditional pay TV, they seek service offerings that more closely meet their video content needs, with the added value of lower cost and flexible use cases. Parks Associates research notes cord cutters used to spend $117 per month on pay-TV services and are now paying $85 per month for OTT services.
“It’s a crowded market, and households continue to diversify their subscriptions,” said Elizabeth Parks, President, Parks Associates. ”Delivering relevant content with excellent personalized experiences is a key focal point to stay competitive.”
“Subscription fatigue and ad intolerance are pervasive in the streaming industry, and consumers are becoming more selective about where they spend their time and money,” said Lexie Knauer, Senior Product Marketing Manager, Brightcove. “It’s important for streaming services to go to market with a strong acquisition strategy to clearly promote the value of their content across the right channels and ultimately capture their target audience.”
“To me, customers are stating no one service can be everything to everyone,” said Michael Ribero, Chief Subscription Officer, The Washington Post. “I think this helps services with a clear identity while others will need to clarify how they fit into the customer’s bundle. And I believe this has downstream ramifications especially for discovering new shows and content.”
Links: Parks Associates