U.S. OTT: 59% Subscribe to Netflix, Amazon or Hulu
According to Parks Associates, 59% of U.S. broadband households subscribe to Netflix, Amazon, or Hulu. The firm says only 6% of U.S. ...
According to Parks Associates, 59% of U.S. broadband households subscribe to Netflix, Amazon, or Hulu. The firm says only 6% of U.S. broadband households subscribe to any other OTT video service without also having a subscription to one of the top three services, while 3% subscribe to one or more sports OTT video services, including MLB.TV, NFL Game Pass, NBA League Pass, or WWE Network.
"U.S. consumers are not taking solely a Netflix, Amazon, or Hulu subscription. Many are shopping around and trialing new services to get access to interesting content unavailable through the big services," said Brett Sappington, Parks' senior director of research. "Interest and viewership in OTT video services have led to an increase in total subscriptions since 2015, including an increase in households subscribing to two, three, or even four or more services. All this translates into more money being spent by consumers and more opportunity for niche content services to capture revenues."
Parks says Crunchyroll and WWE Network are examples of niche services that have grown strong customer bases while remaining unique from industry giants such as Netflix, Amazon and Hulu. Crunchyroll reported more than 1 million global subscribers as of February, while WWE Network had 1.95 million global subscribers following WrestleMania 33 in April.
"Crunchyroll is a great example of a niche OTT video service that understands effective niche-oriented competition," Sappington said. "They understand their target segment extremely well, and they have crafted an experience that caters to that audience, including forums and events to foster a user community."
The research house says 65% of U.S. broadband households subscribe to at least one OTT video service. However, the firm notes that household penetration is slowing and that growth areas are in multi-subscription households and older consumers adopting services.
"One-third of broadband households subscribe to multiple OTT services," said Glenn Hower, Parks senior analyst. "With competition set to intensify, services will begin to focus on niche segments beyond young consumers, offering unique content and services in order to capture any remaining untapped portions of the market."