Despite the influx of new OTT providers that we’ve seen in the past year, the three most used services in the industry, Netflix, Amazon Prime Video and Hulu, have nothing to worry about. Customers remain loyal to them, and their position seems (so far?) unshakeable.
According to the latest analysis by Parks Associates, 91% of US customers using OTT services have a subscription with at least one of the top three players. This doesn’t explicitly mean that these three services occupy 91% of the market - some viewers subscribe to more than one of them. The report also shows that more than half of households use pay-tv (e.g., cable TV) and OTT at the same time. “Customers are willing to pay for multiple video accounts to get the content in which they are interested. Often they choose a service they can’t live without and add another one,” says Brett Sappington, Senior Director of Research at Parks Associates.
Customer preferences are changing, and the OTT market is growing at a meteoric pace - Parks Associates estimates there will be 400 million OTT subscribers worldwide by 2022. It will be interesting to follow the battle that will be played out for such an attractive market.