76% of US broadband homes had OTT in Q1 2020 | Media Analysis | Business | News | Rapid TV News
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With the lockdown and stay-at-home directives in the country leading to a lack of premium content, OTT providers are increasingly turning to new releases and free offers to maintain share says a study from Parks Associates.

Parks OTT 8June2020The Consumer Perception of OTT Video study surveyed 10,000 US broadband households in March 2020, examining the positives and negatives of the top OTT video services and their libraries and features from the consumer point of view. The research found that as many as 76% of US broadband households subscribed to an OTT video service in Q1 2020, while the churn rate for streaming services was 41%. Just over three-fifths (62%) of US broadband households subscribed to a traditional pay-TV service.

Of the 41% of households that trialled at least one OTT service, the majority (69%) adopted at least one paid subscription. The analyst notes that such trails and offers can be successful in attracting new users, but as competition increases and household budgets shrink, providers will need to explore new service models, such as making a portion of content free or offering discounts to longer-commitment subscriptions.

“The entertainment industry, like all industries, faces an unprecedented situation as a result of the ongoing Covid-19 pandemic,” said Steve Nason, research director, Parks Associates commenting on the Consumer Perception of OTT Video study.

“With movie theatres closed and cinematic productions and live events cancelled or postponed, services are lacking some high-dollar content at the same time overall video consumption is accelerating. OTT services responded by adding new releases and extended free trials. As a result, OTT subscriptions have increased, while the churn has declined slightly since last year. But we will see, as lockdowns ease, if these strategies lead to sustainable growth or if the OTT industry needs to adjust again to new viewing patterns.”