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Parks Associates: young viewers vital to OTT market

Following OTT and content licensing announcements at NAB and the Aereo, Inc. case before the Supreme Court, Parks Associates today announced a new report Trends in Content Licensing that analyses television and movie licensing trends and the impact of multiscreen, time-shifting, and the demand for exclusive content. The firm reports pay-TV penetration remains fairly steady at around 85% of U.S. broadband households but over-the-top (OTT) video use is increasing on multiple devices, particularly with younger viewers.

“Pay-TV subscriptions remain high among Millennials, but at the same time, nearly 40% in this age group consider online video the most important source for video content,” says Glenn Hower, research analyst, Parks Associates. “As consumers diversify their viewing resources, the licensing process becomes more complex. Additionally, the Supreme Court case in ABC v. Aereo could drastically reshape the licensing environment for retransmission. A win by Aereo may set legal precedent for a method to rebroadcast without compensation.”

Parks Associates analysts note the cord-cutting threat hasn’t materialized for pay-TV providers because consumers found the experience was too fragmented to get the content they want. This finding underscores the important role of content in retaining subscribers.

Trends in Content Licensing also examines the impact of “original content” as key players such as Yahoo, Amazon, and Netflix develop OTT strategies to reach out directly to viewers with content options exclusive to their respective services.

The report includes perspectives for all players in the licensing ecosystem, including content creators, studios and production companies, networks and motion picture distributors, consumer video providers, and intermediary players and new entrants. Information for the report is drawn from several sources, including Parks Associates’ quarterly consumer surveys of 2,500 to 10,000 U.S. broadband households.

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