Fifth of US broadband households use ad-supported OTT
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Editor
| 15 December 2020
In a market where consumer spending has been shifting toward OTT services and subscriptions as more households cut or trim their pay-TV services, 20% of US broadband households currently use an ad-supported OTT service and 15% use a freemium service, says a study of US OTT from Parks Associates.
Parks US OTT 15Dec2020
Overall, the data showed that US broadband households in Q1 2020 report spent an average of $16 per month on OTT video service subscriptions, behind $89 per month on pay-TV services. Ad-supported OTT and freemium in a strong second place, behind OTT subscription services, among business models.

Moreover there was no clear market leader in the ad-supported and freemium OTT space, with Pluto TV, The Roku Channel, Tubi TV, NBCUniversal’s Peacock and Crackle all scoring relatively similar adoption rates. Parks noted that the market’s latest entrant, Peacock, had the reach, content, and profile to disrupt the area, which could further boost usage of ad-based and freemium OTT among US households.

“A prolonged economic contraction could drive households to reduce pay-TV spending more, while also scrutinising their OTT service stacks,” said research director Parks Steve Nason. “Ad-based services will establish a large role within the today’s OTT service space as consumers look for affordable entertainment options.”