More than half of US broadband households take OTT
Rebecca Hawkes
| 22 October 2014
A full 64% of US broadband households have an Internet-connected device, and 55% have an over-the-top (OTT) service subscription, according to research from Parks Associates.

The analyst said that OTT especially is an area poised for strong growth, especially following HBO's announcement that it will launch a stand-alone HBO Go service.

"The HBO OTT service announcement should not really be a surprise given the overall trends in the video service space," said Brett Sappington, director of research at Parks Associates. "HBO has been aggressive in the online space for some time, first testing a direct-to-consumer approach in Europe through HBO Nordic, its OTT video service offering. Competition in this space is set to increase massively as pay-TV providers, broadcasters, cable networks and other content producers introduce new OTT services."

Although the number of pay-TV households will exceed one billion worldwide by the end of 2015, consolidation, direct-to-consumer services by content producers, and the emergence of new entrants threaten to radically change the traditional television industry. Meanwhile, video consumption on connected CE, smartphones and tablets is increasing, with broadband consumers now averaging more than nine hours per week of consumption on these connected platforms.

"More than 75% of streaming media player owners have an OTT subscription," said Barbara Kraus, director of research at Parks Associates. "The high connection rate for all streaming devices highlights the high level of competition for all players in the industry."