Half of All Households are Watching Internet Video on TV


Parks Associates research finds OTT video services have transitioned back into the home’s living room, with a majority (52%) of U.S. broadband households now watching online video on a TV that is connected to the internet. 360 View: Digital Media and Connected Consumers also finds that watching TV or movies at home is the most popular leisure activity among U.S. broadband households, with 55% selecting this among their top two favorite leisure activities.

“While the total number of hours consuming videos has declined, consumers are watching more internet video on the largest screen available,” said Billy Nayden, Research Analyst, Parks Associates. “The number of hours consumers report watching video on a TV increased for the first time since 2014, with connected devices enabling internet video services on TV and shifting consumers away from PC and mobile viewing. As OTT competition becomes a battle for the living room, the challenge for device makers and content producers is finding the correct product mix to maximize both profit and utility.”

Parks Associates research provides insight into how consumers are using devices and services to provide the content they want in the most convenient way possible. It also provides insights for businesses seeking to maximize their average revenue per customer.

360 View: Digital Media and Connected Consumers finds subscriptions are the dominant business model for OTT services. As more services emerge, many stakeholders fear an impending subscription overload in U.S. households.

“As consumers’ taste for OTT experimentation wanes, they will start to resist the push to add another monthly subscription to their households,” Nayden said. “Many providers are starting to lead with freemium and ad-based models, in anticipation of this pushback.”

360 View: Digital Media and Connected Consumers examines adoption of OTT video services, including subscription, ad-based, and transactional services, with a breakout of market shares by brand. It also examines changes in consumer viewing habits and spending on various types of content.

Additional research includes:

  • 19% of consumers subscribe to either Netflix, Hulu, or Amazon Prime Video and another OTT service, compared to 13% in 2017.
  • Consumers watched 25.7 hours of video per week in 2018, down from 29.5 hours per week in 2016.
  • Local broadcast/channels and programs are the most enjoyed type of programming.

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