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7% of US households have OTT without pay-TV

Brett L. Sappington

Brett L. Sappington

New industry research from Parks Associates finds that in 2015, approximately 7% of all US households, or 8.4 million households, subscribe to broadband and at least one OTT video service but do not subscribe to pay-TV.

This figure includes consumers who have discontinued pay-TV service and those who have never subscribed to pay-TV. In other Western nations, this same figure is approximately 4% or less among all households. Operators are introducing their own OTT services to appeal to consumers who are not currently taking pay TV.

Currently, 57% of U.S. broadband households subscribe to an OTT video service. Among European broadband households, 57% in the U.K., 29% in Spain, and 24% in Germany subscribe to an OTT service.

“The OTT video services marketplace continues its rapid rate of change, impacting the video ecosystem across world markets,” comments Brett Sappington, Director of Research, Parks Associates. “While operator attempts at TV Everywhere have made little impact, OTT video services are experiencing a boom. A variety of new players are entering the market, and operators including DISH Networks, Rogers Communication, Bell Canada, and Sky are responding with OTT video services of their own. How the industry responds to this change will ultimately affect the fundamental structure of the video industry for years to come.”

 

 

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