Originally featured on BroadcastEngineering.com
U.S. broadband homes embrace online video subscriptions, says survey

A new survey of U.S. broadband households reveals that more than four in 10 have a subscription to an OTT video service like Netflix, Hulu Plus or Amazon.

The findings, part of Parks Associates “Video-on-Demand: The Road to Revenues,” indicate 44 percent subscribe to online video services, and that those 18 to 24 years old are most likely to subscribe to OTT services. Among this group, 8 percent have never subscribed to a pay-TV service.

"Online video is now a common source of video viewing in U.S. households, while transactional VOD (TVOD) is near the bottom,” said Parks Associates senior analyst Heather Way. “However, industry players, from service providers to retailers, have many new options in monetization models, including advertising, t-commerce, transactions and subscriptions."

According to Way, who will moderate a fireside chat with Blair Westlake, Corporate VP, Media and Entertainment, Microsoft, at the Next TV Summit today (Sept. 11) in San Francisco, the variety of viewing choices consumers now have is “dismantling the traditional TV business models.”

Data for the new Parks Associate research is drawn from a survey of 10,000 U.S. broadband homes conducted in the first quarter of the year. 

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