Report: U.S. OTT Adoption Up 12 Percent


DALLAS: OTT video service adoption has increased 12 percent among U.S. broadband households since 2014, according to Parks Associates data.

Parks Associates notes that adoption of OTT video subscriptions has increased by 12 percent since Q3 2014, with the number of available services and consumer awareness both increasing, despite password sharing growing by approximately 8 percent over that same time.

“We have seen a steady climb thus far in 2016,” said Brett Sappington, the senior director of research at Parks Associates. “With Hulu’s shift to a subscription-only approach, OTT video subscription penetration in the U.S. market will continue to rise through the end of this year.”

The company’s OTT Video Market Tracker service shows Netflix, WWE Network and Hulu have the highest “Net Promoter Scores” among major OTT video services in the U.S. (Net Promoter Score measures the likelihood of subscribers recommending a product or service to others.)

“Net Promoter Scores reveal the motivations behind many of the churn rates we are seeing,” added Ruby-Ren Bond, research analyst at Parks Associates. “For example, Hulu has a higher churn rate than Amazon, but its NPS is much stronger than Amazon’s. That indicates the retail side of Amazon’s Prime service is likely a strong[er] factor than the video service in retaining is subscribers.”