OTT Providers May Be Missing Key Revenues

Over-the-top TV platforms may be growing, but OTT providers may not be getting an apportioned amount of revenues from users.

A third-quarter 2014 survey says 11% of all U.S. broadband home relying exclusively on shared OTT accounts when using subscription OTT services, according to Parks Associates.

The finding says that 8% are using a OTT video account held by someone outside of their home; and 6% are exclusively using a shared OTT account. Parks says 57% of U.S. broadband households access to some OTT.

Looking at some key OTT areas, Parks says 11% of Netflix users, 10% of Hulu Plus and 5% of Amazon Prime Instant Video are using an account paid for by someone else.

Younger TV homes are the highest in terms of using shared OTT accounts -- 22% of 18-24 viewers who use an OTT service use a subscription that was paid for by someone outside of their homes. Parks says this OTT account-sharing research includes OTT services that are independent of pay-TV services.

Brett Sappington, director of research, Parks Associates, stated: “OTT video accounts for a disproportionate amount of content consumed when compared to expenditure—over one-third of video consumed per week is OTT, but it is only 9% of the household video budget.”

Next story loading loading..