55% of US broadband households subscribe to an over-the-top (OTT) video service such as Netflix or Hulu Plus, up from 44% in 2013, according to new research from Parks Associates.
Subscriptions were found to be highest among households with a younger “head of household”, with 72% among ages 18-24 and 71% among ages 25-34 having an OTT service subscription.
“Consumers in key demographics have adopted OTT services in large numbers, and now both content companies and service providers need to develop the technologies and solutions to deliver high-quality video experiences to these subscribers,” said Glenn Hower, research analyst at Parks Associates.
“Parks Associates research analyses the consumer demand for OTT, 4K, new video content, and cloud DVR solutions along with the challenges and opportunities in deploying these solutions.”
In 2014, the average number of hours spent watching video content exceeded 36 hours per week, with internet video accounting for 36% of that time – approximately 13.3 hours a week.
Homes with children spend on average 90% more on OTT services and digital video than homes with no children, with more than 75% of streaming media player owners having an OTT subscription.
Brett Sappington, director of research, Parks Associates, said that rather than cannibalising the consumption of broadcast, pay-TV, and packaged media content, internet video is increasing overall consumption levels for video, with the company forecasting that almost 50 million streaming players will be sold worldwide in 2017.
