OTT Subscribers Hold Steady

The length of time users have owned an OTT video service -- as well as its cancellation rates -- have remained relatively steady over the last three years, according to Parks Associates.

Parks says the average length for a OTT video services is two-and-a-half years: 30 months.

In addition, the marketing research company says “churn” rate among U.S. OTT subscribers is 18%. The churn rate is the overall number of subscribers cancelling an OTT service as a percentage of current OTT subscriptions.

Parks says U.S. OTT penetration is “starting to plateau at around 65% adoption among U.S. broadband households.”

In July, comScore estimated that only eight OTT services reach more than 10% of streaming homes, or more than 5.95 million homes using the service. The top four: Netflix, at a 73% penetration; YouTube, 50%; Hulu, 36%; and Amazon, 28%.

In four years, Parks estimates that more than 265 million households worldwide will have over 400 million OTT video service subscriptions.

Parks says more than 85% of U.S. millennials subscribe to at least one OTT video service.

The Parks research comes from a first-quarter survey of U.S. broadband households of 5,000+ respondents.



1 comment about "OTT Subscribers Hold Steady".
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  1. Ed Papazian from Media Dynamics Inc, September 7, 2018 at 11:43 a.m.

    Not surprising but certainly a wakeup call for those who keep predicting that in no time---like, maybe, tomorrow----just about all of "linear TV"s massive viewing tonnage will shift to OTT. Not likely for a number of reasons. One, is that a lot of people are perfectably satisfied with "linear TV". Two, is the added cost of OTT subscriptions---as most OTT subs opt to keep pay TV too. Three, is the limited nature of most OTT content. People may want to watch what they want---when they want it---but what it it's not there?

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