Quarter of US broadband households use free, ad-based OTT services | OTT | News | Rapid TV News
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In a consumer study examining demand for pay-TV features and subscription OTT video services, Parks Associates has found that US broadband households are interested in offerings accessed via television, such as offline viewing, video gaming, food delivery, ride sharing and gambling.
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Furthermore, said the 360 View: Video Services & Connected Consumers research, 25% of US broadband households have watched video on a free, ad-based OTT service in the past 30 days and no single service dominates the market. Among the leaders, 7% of US broadband households use The Roku Channel, 6% use the Pluto TV AVOD service and 6% use Crackle and 31% of the households subscribed to HBO, the market leader in premium channels. While a quarter of the households used an antenna to watch live TV channels, overall just over three-quarters watched live TV channels.

The study also found that a third of broadband households are interested in vMVPD service bundles and the same percentage had tested an OTT subscription service in the past six months. A fifth of pay-TV subscribers could access an OTT service via their channel guide or on-screen menu. Looking at business generated, 26% purchasing items seen in advertisements appealing or very appealing.

“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,” commented Parks Associates president Elizabeth Parks on the 360 View: Video Services & Connected Consumers research. “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.”

The analyst also noted that as consumers and their entertainment choices remain the key driver of change within the entertainment industry products — such as the millennial-focused mobile-only short-form content service Quibi — that offer both free and subscription tiers would be disruptive.