US OTT-only households triple since 2013 | Media Analysis | Business
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Despite the constant fears of cord-cutting from the traditional pay-TV industry, Video Advertising Bureau (VAB) research has revealed that the fundamental dynamic of the US over-the-top (OTT) market is a matter of addition, not subtraction.

VAB OTTreport 29Mar2018The You Down with OTT? report underlines the constant trend of consumers’ voracious appetite for video content, especially for premium multi-platform TV. With 820 million connected video devices in the US, the study found that viewers were satisfying their cravings for quality programming anywhere, anytime through a growing selection of devices and streaming services.

To this end, the survey found that currently, nearly three-quarters (71%) of Internet users took advantage of an OTT-service at least once a month while 70% also had a multi-channel subscription. That said, the VAB report also noted that the number of US households using only OTT streaming devices and services has nearly tripled since 2013 and that such OTT-only growth represents 14.1 million homes or 11% of US TV households. VAB though put this into context by adding that there were 90.3 million US multichannel households, 74% of the total number of TV households in the country.

Other key findings were that nearly a third of OTT subscribers hold three or more means of accessing OTT content, an eight-fold increase over just the last two years, giving viewers more choices, while almost two-thirds (65%) of people who use a second screen while streaming have looked up info on a product that’s been advertised on a TV show. Advertising currently comprises 45% of all online video revenue and this is projected to grow to almost 60% over the next ten years.

“In their quest for more video options, the vast majority of Americans are layering their OTT service on top to their current MVPD subscription,” remarked Danielle DeLauro, executive vice president, VAB. “It is not an either or situation, it’s a ‘more’ solution – more programming distribution choices, more quality content options, more viewing device choices, and more convenience.”