TV Consumers Spending More On Subscription Internet Video

TV consumers are spending more for paid, subscription Internet video -- including over-the-top TV services. Parks Associates says that for the average U.S. broadband consumer, spending has climbed nearly 30% to $9 per month from $7 a month in 2012.

The research company says nearly 60% of U.S. consumers subscribe to an OTT provider, such as Netflix, Hulu Plus or Amazon Prime Video. In addition, more than 75% of streaming media player owners have an OTT subscription.

According to Parks, nearly 50 million streaming media players will be sold worldwide in 2017. The homes with children spend on average 90% more on OTT services and digital video than homes with no children.

These OTT services are adding to the average consumption of video by consumers. "The number of hours watching video content continues to rise, exceeding 36 hours per week in 2014, with Internet video accounting for 37% of that time, or approximately 13.3 hours a week," said Brett Sappington, director of research of Parks Associates, in a release.

He adds: "Rather than cannibalizing the consumption of broadcast, pay-TV, and packaged media content, Internet video is increasing overall consumption levels for video."

1 comment about "TV Consumers Spending More On Subscription Internet Video".
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  1. Leonard Zachary from T___n__, April 10, 2015 at 3:52 p.m.

    Wayne,
    Traditional ad supported linear Tv is in need of a complete makeover for viewer experience which requires innovation and having somebody in charge with vision. Unfortunately these elements required for the future of traditional TV are M.I.A. at the bC suite level.
    L

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