In the U.S., 57% of current traditional pay TV providers have an OTT video service, while 7% (8.4 million U.S. homes) have an OTT service but no pay TV services, according to Parks Associates. This last number includes consumers who have discontinued pay TV service and those who have never subscribed to pay TV.
Globally, Parks says revenue from OTT service will more than double in four years, reaching $19 billion in 2019 from $9 billion in 2014.
Other countries are a bit behind U.S. consumers -- but growing. In the U.K., 57% of pay TV homes with broadband have at least one OTT service, while Spain has 29% of pay TV homes with broadband that have an OTT service, and in Germany, the percentage is 24%.
In the U.K., Spain, and Canada, 4% of TV consumers' homes with broadband have an OTT service, but no traditional pay TV package; Germany is at 2%.
Traditional pay TV providers have tried to compete with OTT with their own TV Everywhere efforts -- putting their traditional TV content on new mobile apps and other non-traditional platforms.
But Brett Sappington, director of research for Parks Associates, says this hasn’t worked. “While operator attempts at TV Everywhere have made little impact, OTT video services are experiencing a boom.”