Apple TV+, Apple’s upcoming streaming service, can’t get here soon enough. Parks Associates research finds that the percentage of households with multiple over-the-top (OTT) subscriptions has increased by 130% since 2014.
OTT stands for over-the-top, initially named in reference to devices that go “over” a cable box to give the user access to TV content. In OTT channels, content is delivered via an internet connection rather than through a traditional cable/broadcast provider.
In 2019, 46% of US broadband households subscribe to two or more OTT services. Parks Associates reports only 33% subscribed to multiple services in early 2017 and 20% in 2014.
“The number of OTT services available in the US increased by 140% in five years, giving consumers an unprecedented number of options to meet their video needs,” says Steve Nason, Senior Analyst, Parks Associates. “Most OTT households are anchored by one of the three major OTT services—Netflix, Hulu, or Amazon Prime Video—but consumers are finding they can’t fulfill all their interests through a single service. Many small and medium-sized services are building their brand and subscriber base by filling in these gaps in content.”
He adds that while overall adoption and awareness of OTT video services as a category are high, awareness of any specific individual service is low, which will make it difficult for smaller services to match the scale, revenues, and marketing efforts of larger players. Parks Associates research shows nearly three in 10 OTT services in the U.S. are on Amazon’s Prime Video Channels aggregation platform, more than four times the rate from two years ago.
“Netflix can afford to license high-value content like Seinfeld to supplement its original content, and Apple can buy commercial space during the Emmys and NFL games to promote its upcoming Apple TV+ service and its array of content and stars,” Nason says”By contrast, smaller OTT services are having to harness the power of a partnership with an aggregator, bundling or content partner, or marketing and promotion partner to boost awareness of their brand and offerings.”
Parks Associates also found that:
-
Fifty-three percent of US broadband households subscribe to at least one OTT service and a pay-TV service.
-
Nearly three-quarters subscribe to an OTT video service, up from 52% in 2014.
-
Among the OTT video services available in the U.S., approximately 90 have fewer than 50,000 subscribers and 72 have fewer than 20,000.
Apple TV+ will launch Nov. 1 for $4.99 per month. However, you can get a year’s subscription with the purchase of a new iPhone, iPad, or Mac.
