Tag Archive: Parks Associates

7% of households in U.S. have broadband and OTT but no pay TV

New industry research from Parks Associates finds global OTT video service subscription revenues will increase from nearly $9 billion in 2014 to over $19 billion in 2019. Currently, 57% of U.S. broadband households subscribe to an OTT video service. Among European broadband households, 57% in the U.K., 29% in Spain, and 24% in Germany subscribe to an OTT service. Read the rest of this entry »

Seventeen percent of U.S. broadband households are likely to subscribe to an OTT HBO service

New Parks Associates video research finds 17% of U.S. broadband households are likely to subscribe to an over-the-top (OTT) video service from HBO. Among these likely subscribers, 91% are currently pay-TV subscribers, and roughly one-half would cancel their pay-tv service after subscribing to this HBO OTT service. The research firm reports the average head of household in a U.S. broadband household watches nearly 3.5 hours of OTT video each week on a TV set.

The 360 View Update – Market Focus Consumer Segmentation: OTT Video Buyers, which includes a Q4 2014 survey of 10,000 U.S. broadband households, finds an HBO OTT offering will create competitive challenges for all ecosystem players, including Netflix, Amazon, and pay-TV providers.

“HBO picked a good time to announce its standalone HBO Go OTT service in the U.S.,” said Glenn Hower, Research Analyst, Parks Associates. “The percentage of subscribers interested in OTT video services is trending upward, and more industry players are planning to launch their own OTT services. DISH announced at CES 2015 that its OTT service, Sling TV, will include live TV such as CNN, ESPN, ESPN2, TNT, and TBS. Sports programming could be a major addition for standalone OTT services as sports is one of the primary reasons consumers elect to keep pay-TV services.”

“2015 is set to be the year of OTT,” said Brett Sappington, Director, Research, Parks Associates. “Along with the new services from CBS, HBO, and DISH, we expect several other players to launch or announce services in the U.S. market in the next few months. In Canada, Rogers Communications and Shaw Communications unveiled their shomi online video service in November. In Europe, several players are starting up new OTT services to counter the entry of Netflix into their markets. Others are expanding their OTT offerings in order to reach customers both in their home markets and expatriates who want to watch programs from home.”

Over 50% of U.S. broadband households subscribe to an OTT video service, but Parks Associates analysts say this finding does not mean consumers are ready to abandon their televisions.

“This shift to the use of OTT on the TV screen will impact the entire ecosystem, including pay-TV providers, broadcasters, cable networks, and advertisers. Everyone will need to adjust to a new way of doing business,” Sappington said.

“Television is not dying, but it is evolving,” Hower said. “Linear video comprises only a slim majority of video viewed on the TV screen at 51%, and overall video consumption has shifted to on-demand sources. The age of appointment television is coming to a close, and programming will need to adapt to an on-demand environment.”

Source: http://www.parksassociates.com/blog/article/pr-jan2015-ott-hbo

Most US homes stream content through games consoles

Parks Associates research shows that 46 per cent of US broadband households have a game console connected to the Internet and over one-quarter (28 per cent) use the connected gaming console as their primary connected CE device. Among these primary console users, roughly three-quarters use the gaming console to access non-gaming content online at least weekly, and nearly 40 per cent access such content for more than 10 hours per week.

“Gaming consoles are the most frequently used connected CE device because of their high adoption rates-of the broadband households that have only one connected CE device, nearly 60 per cent have a game console,” said Barbara Kraus, Director of Research, Parks Associates. “As the non-gaming capabilities of consoles have expanded, so too has the potential for consoles to become an entertainment platform for online content such as video, music, and apps.”
Two-thirds of US broadband households currently have at least one connected CE device. Smart TVs trail gaming consoles as the second most commonly used connected CE device. Twelve per cent of US broadband households with an Internet-connected CE use a streaming media player most frequently, and only 9 per cent use a connected Blu-ray player most frequently, according to Parks Associates’ Q1 2014 survey of 10,000 US broadband households.

“Smart TVs are popular, but households typically make these purchases when they need to upgrade their flat-panel TVs, which will spread out adoption to coincide with the TV replacement cycle,” Kraus said. “Blu-ray players are performing poorly as a connected CE platform, whereas many gaming consoles have already staked a claim in the living room, which helps to drive non-gaming uses for the platform.”

Kraus added that households with multiple connected CE devices are less likely to use the console as their primary connected CE device.

“The ability to play console-quality games remains the core adoption driver,” Kraus said. “However, our research shows that younger console owners and those with children in the home are heavier users of online, non-gaming content. While 62 per cent of all broadband households have a gaming console, more than 80 per cent of households with children in the home have the device.”

 

Source: advanced-television.com

Google Chromecast in decline

Research from Parks Associates reports that usage of Google Chromecast appears to be declining while adoption of streaming media players has increased to nearly 20 per cent of US broadband households, up from 14 per cent in 2012.

The new Google Chromecast dongle is pictured on an electronic screen as it is announced during a Google event at Dogpatch Studio in San Francisco

The research, which includes data and analysis of a Q1 2014 consumer survey of 10,000 US broadband households, shows ownership of Chromecasts is steady at approximately 6 per cent of US broadband households, but monthly usage rates are slightly lower than the last two quarters of 2013. The percentage of Chromecast owners who use the device at least monthly to view web pages on a TV declined from 76 per cent in Q3 2013 to 57 per cent in Q1 2014. Similarly, the percentage of Chromecast owners who use the device at least monthly to watch online video on a TV dropped from 78 per cent to 73 per cent.

“Streaming media players are starting to play a bigger role in home entertainment, but interest in new entry Google Chromecast is waning,” said John Barrett, director, Consumer Analytics, Parks Associates. “Streaming media players, thanks to their ease-of-use, trail only game consoles and smart TVs as the most frequently used streaming media device in the home. By contrast, only about 22 per cent of Chromecast owners say it is the most frequently used streaming device in their home.”

The research also finds smart-TV adoption increased to over one-third of US broadband households.

“As consumers add new devices to their home, the usage habits in the home change and adapt to the new device, its benefits, and its capabilities,” said Brett Sappington, director, research, Parks Associates. “Chromecast was introduced last summer. Given the low price, many consumers purchased one and began experimenting with it, producing high initial use. Over time, however, owners developed a better understanding of Chromecast’s usefulness and appropriate niche in the video-viewing environment. Some continue to use Chromecast regularly, while others are choosing different options to get online video to their televisions.”

source: advanced-television.com