OTT migration continues to grow steadily | Media Analysis | Business
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The migration of US consumers away from traditional multichannel video services has been on full display in the past decade, and the shift is expected to increase moderately in the next 12 months, according to Kagan research.
IHSMarki OTT 13Aug2018
While traditional multichannel video subscriptions have been considered as the top home entertainment choice for US households, the loss of content exclusivity is expected to shift the consumer base towards over-the-top video services and fuel the growing ranks of online-only video households.

A series of price hikes have impacted subscriber growth in the virtual multichannel space, the firm noted. However, the combined number of households relying on traditional and virtual multichannel services for video entertainment are still expected to account for the majority of occupied homes through 2023, with 64% of the market.

Kagan said that total traditional multichannel subscriptions (including residential and commercial) are down 16.4 million in the last year, to 73.6 million. Traditional residential multichannel households (excluding commercial and overlap) are down 15.6 million to 70.5 million.

In contrast, virtual multichannel households are up 6.4 million to 13.5 million. Online video-only households up 10.6 million to 25.2 million; and over-the-air (OTA) households  are up 3.8 million to 21 million.

The net change in subscribers is a loss of 84 million residential accounts.