According to Parks Associates, more than one-third of U.S. broadband households subscribe to multiple over-the-top (OTT) video services, including 15% subscribing to three or more. At the same time, penetration of traditional pay TV service subscriptions among households with broadband has fallen below 80%, its lowest point in the past seven years.
"The pay TV industry is facing a massive shift in consumer viewing, service selection and purchasing, forcing companies throughout the ecosystem to re-examine how they do business," said Brett Sappington, Parks' senior director of research. "Some of the fastest growing OTT video services are online pay TV services and offerings from premium cable networks and broadcasters. New partnerships and distribution channels, such as Amazon Channels, are changing the dynamic for marketing and monetization of services. The result is a combination of new players and aggressive traditional powers that are redefining the video services world."