More than half of US broadband households now own a smart TV | Media Analysis | Business | News | Rapid TV News
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A study from Parks Associates has found that smart TVs are pushing to be the default platform for streaming content with such devices present in 55% of US broadband households.
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OTT Streaming Trends to Watch in 2022 report shows that the analyst expects smart TVs to cement their position as the default connected streaming platform in 2022. It added that consumers are increasingly interested in having all their entertainment available on a single device, and as smart TVs have become more affordable, with improved user interfaces (UIs), they offer an attractive integrated option for viewing all content.

Parks Associates also anticipates streaming services in 2022 will begin to recognise churn as a normal part of doing business. The average churn rate in 2020 was 40%; the current percentage is 45%. The company noted that streamers currently typically subscribe to one or more foundational services – Netflix, Amazon Video, Disney+ or Hulu – and then add three or more additional services, each offering unique and differentiated content, from which consumers unsubscribe once they no longer see the value in the cost or the content.

“Rapid changes in the market over the past two years, combined with continually shifting customer preferences, have forced service and device suppliers to adjust and adapt on an almost daily basis," said Eric Sorensen, senior contributing analyst, Parks Associates commenting on the OTT Streaming Trends to Watch in 2022 report.

“The standard in service now is to deliver desirable content so that consumers can view it when, where, and how they want it. Service providers, both conventional and online, will have to continue to adjust as consumer demands continue to evolve. We also expect the traditional business models for movie windowing releases to erode more in 2022…but for many films, movie studios generally benefit from bypassing exclusivity and releasing through multiple channels, including theatres and direct-to-consumer. In 2022, we will see more of this hybrid windowing strategy and experimentation."

Recent research from Parks also showed that content aggregators were gaining ground on direct and bundling methods for signing up new subscribers. It calculated that a third of OTT subscribers have subscribed to at least one service through an aggregator platform as of the third quarter of 2021.