Subscriptions dominate American OTT space

DetailsMichelle Clancy | 05 May 2015

A full 75% of North American over-the-top (OTT) video service providers use a subscription-based business model, either exclusively subscription or combined with advertising or transactions.

Research firm Parks Associates' new OTT Video Market Tracker found that the popularity of subscription models has allowed OTT to stay the lowest portion of household video expenditures, even though it now accounts for one-third of video consumption among US broadband households. The research firm predicts providers will increasingly rely on advertising to make up for the revenue shortfall.

Parks has launched the OTT Video Market Tracker, with analysis of market trends and profiles of the nearly 100 OTT video service providers in the US and Canada. Brett Sappington, director of research, is the lead analyst for the service.

Following Netflix, HBO, YouTube, Amazon and others, the tracker offers insight on service features, including content offered; unique aspects and key service differentiators; penetration and estimated subscribers, reported quarterly; pricing and business models; updates on existing players; and profiles and industry implications for new services, including analyst insights.