Study: 7 Percent of U.S. Households Have Broadband & OTT, No Pay TV

DALLAS: According to new research from Parks Associates, 57 percent of U.S. broadband households subscribe to an OTT video service, while in European markets, the figures are 57 percent in the U.K., 29 percent in Spain and 24 percent in Germany.

The new report, TV Everywhere and the New World of OTT, finds that global OTT video service subscription revenues will increase from nearly $9 billion in 2014 to over $19 billion in 2019.

Parks Associates also finds that in 2015, approximately 7 percent of all U.S. households, or 8.4 million households, subscribe to broadband and at least one OTT video service but do not subscribe to pay TV. This figure includes consumers who have discontinued pay-TV service (often referred to as "cord cutters") and those who have never subscribed to pay TV (dubbed "cord nevers"). In other Western nations, this same figure is approximately 4 percent or less among all households.

“The OTT video services marketplace continues its rapid rate of change, impacting the video ecosystem across world markets,” said Brett Sappington, the director of research at Parks Associates. “While operator attempts at TV Everywhere have made little impact, OTT video services are experiencing a boom. A variety of new players are entering the market, and operators including DISH Networks, Rogers Communication, Bell Canada and Sky are responding with OTT video services of their own. How the industry responds to this change will ultimately affect the fundamental structure of the video industry for years to come.”

Sappington added, “Avid video consumers are still taking pay-TV services if they can afford them. However, companies in the video ecosystem are eager to reach those consumers who are currently falling through the pay-TV cracks.”