DALLAS, June 8, 2020 /PRNewswire/ -- New research from Parks Associates' OTT video research, from a survey of 10,000 US broadband households fielded in March 2020, finds that 76% of US broadband households subscribed to an OTT video service in Q1 2020, while the churn rate for streaming services was 41%. Sixty-two percent of US broadband households subscribed to a traditional pay-TV service.
"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. "With movie theaters 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."
Nason will examine the future of streaming services in the webinar "Streaming in the 2020s – An Industry Comes of Age," cohosted with Comcast on Tuesday, June 9, 11:00 A.M. CT (12:00 P.M. ET). In this webinar, speakers will look beyond the current moment to determine new strategies and innovations will ensure continued growth and viewer engagement.
"Of the 41% of households that trialed at least one OTT service, the majority (69%) adopted at least one paid subscription," Nason said. "New trial 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."
Parks Associates' Consumer Perception of OTT Video examines the positives and negatives of the top OTT video services and their libraries and features from the consumer point of view. The firm's landmark service OTT Video Market Tracker features monthly updates on trends and market activities in the OTT video space, with comprehensive tracking of the OTT video services industry, identification and analysis of new OTT video service players, and insights into industry trends and disruption
To schedule an interview with an analyst or to request specific research data, please contact Rosey Ulpino at [email protected], 972.996.0233.
About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company's expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.
Each year, Parks Associates hosts industry webinars, the CONNECTIONS™ Conference Series, Connected Health Summit: Engaging Consumers, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com
SOURCE Parks Associates