The United States is the World's Largest OTT Market
Elizabeth Parks
Market Research and Marketing Communications Expert | Thought Leadership | Networking / Brand Visibility for Tech and IoT Markets - Consumer, Small Business, Multifamily
The United States is the world's largest OTT market.?Saturation has crept in for foundational streaming services in the US.
According to Parks Associates Video Market Tracker, 377 independent OTT providers exist in the United States in 2022 and 88% of US internet homes have at least one OTT subscription service.
The streaming market in the United States may be nearing saturation, particularly for those providers that have held the lion’s share of the industry. Since the end of the?pandemic, services such as Netflix and Prime Video are experiencing intense competition. As a prerequisite for maintaining future subscriber and viewership growth, services are innovating and adopting hybrid business models.
Even for providers with premium services, the prevalence of ad-supported lower-cost tiers is increasing. Ad-supported standalone services (FAST and AVOD) are market growth drivers, with free offerings able to reach previously untapped consumer demographics. In response to slowing revenue growth and increasing competition, services add AVOD, strive to expand their global presence, and offer premium sports rights to attract new audiences. A growing number of subscriptions are facilitated by service provider bundling and aggregators, therefore assisting customers who desire convenience and simplicity.
As the OTT market matures post-pandemic, services compete for consumers and must innovate and evolve to stay on the path to ROI. Ultimately, growth and retention may lie in providing simplification of an overwhelming mix of services, content, and billing relationships that consumers face now, or in offering solutions tiered to multiple levels of affordability or in providing a mix of these options.
In 2022, the gap widened between households who subscribe to OTT and those who have traditional pay TV.?Subscriptions for online video continue to increase due to the abundance of available options and ease of cancellation. Streaming is no longer a supplement to entertainment offerings, but a replacement for traditional pay television.
Generations of cable television subscribers have complained about paying for channels they do not watch. Over time, streaming TV, including vMVPDs, is surpassing traditional TV as a key form of "paid TV" distribution and consumption. YouTube TV and Hulu with Live TV dominate the vMVPD market, although several smaller providers like FuboTV and Philo are gaining popularity. That said, the growth of vMVPDs slowed in mid-2022, potentially due to the introduction of FAST and AVOD as well as customers' spending restraints. ?
Subscription over-the-top (OTT) services continue to dominate video consumption, yet 44% of households continue to watch some form of Pay TV. The percentage of those who solely subscribe to Pay TV and those who subscribe to both Pay TV and OTT continues to fall.
This is an excerpt from Parks Associates Video Services Dashboard. The Video Services Dashboard provides a visual representation of the most critical indicators used by organizations that provide video services to the home to make strategic decisions. The research includes data from Parks Associates survey work of consumers quarterly.
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Penetration of Traditional vs. OTT Video Services
Pay-TV Services
Intention to Make Changes to Pay-TV Service
OTT Services
Appendix
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1 年Thanks for Posting.
Market Research and Marketing Communications Expert | Thought Leadership | Networking / Brand Visibility for Tech and IoT Markets - Consumer, Small Business, Multifamily
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