Nearly 50 Percent of U.S. Broadband Households Use OTT Video

LAS VEGAS: New research from Parks Associates finds that roughly 50 percent of U.S. broadband households use subscription or transactional OTT video and OTT users spend more on video in general than the average household.

The research finds that subscribers of OTT services spend more per month renting and buying video downloads than the average household, which contributes to the success of Amazon's business model of integrating transactional services with its Amazon Prime. Two-thirds of Amazon Prime Instant Video subscribers use Amazon transactional services.

Not counting pay-TV services, OTT subscribers spend $67 per month on video, versus $40 on average for all U.S. broadband households. The vast majority of OTT users also have pay-TV service.

"Amazon Prime subscribers report their expenditure on rented and purchased downloads is increasing," said John Barrett, the director of consumer analytics at Parks Associates. "Netflix subscribers are more likely to say expenditure in all other categories has decreased—a fact that may reflect Netflix’s reliance on a single revenue model. Redbox Instant subscribers, conversely, are more likely to say expenditure is increasing in all categories."