PLANO, Texas—New research from Parks Associates' Broadband Market Tracker shows broadband subscriber losses among the largest cable providers continue to lessen as operators strengthen customer retention efforts and expand converged broadband and mobile offerings.

Leading cablecos, including Comcast, Charter Spectrum, and Altice, lost an estimated 280,000 combined broadband subscribers during the first quarter of 2026, an improvement from an estimated decline of 320,000 subscribers in Q1 2025.

During the same period, cable MVNOs added approximately 830,000 combined mobile subscriptions, highlighting continued consumer interest in bundled connectivity services.

"The competitive landscape has shifted from winning subscribers at any cost to keeping existing customers through better pricing, simplified service offerings, and integrated connectivity," said Kristen Hanich, senior director of research, Parks Associates. "Providers are investing in strategies that reduce churn while strengthening the value of broadband through mobile bundles and improved customer experiences."

The research also found that providers are introducing new programs designed to address key causes of customer churn, particularly during household moves and service transitions. Competition is also intensifying around pricing and bundled offerings.

"Optimum introduced a promotion guaranteeing $25 per month for 300 Mbps fiber service for five years for new customers, while encouraging additional savings through mobile and TV bundles," Hanich said. "Starlink replaced its $499 upfront hardware purchase with a monthly equipment fee, lowering the initial cost of adoption and shifting more expense into recurring monthly service."

The data from Park’s Tracker service also found continued momentum toward converged connectivity services. During the first half of 2026, both AT&T and Verizon introduced integrated home internet and mobile offerings that simplify billing and strengthen customer loyalty.

Current adoption of this bundle is now at 26% of all US households, according to Parks Associates. These unified service models reflect a broader industry strategy to increase customer lifetime value while reducing subscriber churn.

The Broadband Market Tracker provides ongoing analysis of broadband subscriber trends, competitive strategies, pricing, fiber, cable, fixed wireless, satellite broadband, and converged service offerings across the US market

PLANO, Texas—Tubi, The Roku Channel and Pluto TV are the three top-rated U.S. free ad-supported streaming television (FAST) platforms by monthly users, according to Parks Associates’ just-released Top 10 U.S. FAST Services list, as the category shows continued momentum in subscriber growth and engagement.

Parks released its ranking as its quarterly surveys of 8,000 U.S. internet households finds 46% of those homes regularly use FAST services to watch long-form video content, and as FAST channels continue to grow in popularity.

Dominant FAST service Tubi has a strong head start among category players, the rankings showed, significantly outpacing its competitors. The Roku Channel secured the second position, followed by Pluto TV, highlighting strong engagement across leading platform-backed services. Other notable performers include Samsung TV Plus and XUMO Play, which continued to scale their audiences amid growing consumer demand for free streaming options.

"FAST services are no longer a secondary viewing option, they are a central part of the streaming landscape," Parks Director, Entertainment Research Michael Goodman said. "The gap between leaders like Tubi and the rest of the market underscores the importance of content breadth, distribution partnerships and user experience in driving viewer engagement."

Midtier services such as LG Channels, ViX, and Local Now demonstrate steady traction, while WatchFree+ (Vizio) and Sling Freestream round out the Top 10 FAST List.

The data reflects a broader industry shift as consumers increasingly turn to free, ad-supported alternatives amid subscription fatigue and rising streaming costs. With advertisers following audiences into FAST environments, the sector is poised for continued growth through 2026 and beyond.

Goodman will present and share Parks Associates during back-to-back sessions at TVOT (TV of Tomorrow) Montreal 2026 at The Alt Hotel. On May 21, he will present on "CTV Advertising I: What's Working, What Isn't, and Why" at 9:55 a.m. and "CTV Advertising II: What's Next?" at 10:40 a.m.

Parks’ Streaming Video Tracker is a subscription service featuring monthly market updates, quarterly subscriber estimates for multiple streaming services in North America and access to an exclusive service portal where subscribers can search and view the data.

Parks Associates’ latest streaming video research highlights what it is calling a “new era of streaming scale” with data showing that Paramount’s acquisition of Warner Bros. Discovery (WBD) would extend the combined company’s reach to 57% of all US internet households.

This deal would put it on par with the four streaming giants, Netflix, Google, Amazon, and Disney, which each reach nearly 60% of all consumers via their various platforms and services.

According to the latest data, nearly two-thirds (64%) of US internet households use Netflix, making it the most widely adopted streaming ecosystem. Amazon follows closely, with 61% of households engaging across its portfolio, including Prime Video and MGM+, while YouTube’s suite of services reaches 61% of households as well. Disney’s multi-platform strategy, including Disney+, Hulu, and ESPN+, drives adoption among 58% of households.

“There is a clear shift in how consumers engage with streaming content,” said Michael Goodman, Director, Entertainment Research, Parks Associates. “Unless you are Netflix, it’s no longer about a single flagship service. Success increasingly depends on building a broad ecosystem of complementary offerings that keep viewers within a single brand family.”

Parks Associates provides monthly updates on the streaming ecosystem through multiple research services, including the Streaming Video Tracker. This research service delivers monthly reports on market and consumer trends, quarterly estimates on subscriber growth, and ongoing analysis on distribution strategies (e.g., film, broadcast, pay TV, SVOD, FAST, AVOD) and business models (e.g., licensing, subscription, advertising, transaction).

Parks Associates data also shows strong performance from hybrid and legacy media conglomerates. Fox, Comcast (Peacock), and Roku continue to build meaningful engagement through niche and free streaming platforms.

The findings highlight several ongoing major trends shaping the streaming industry:

• Ecosystem Advantage: Companies offering multiple services under one brand are better positioned to retain and grow audiences.
• Aggregation Strategy: Bundling across SVOD, AVOD, and live content is becoming a key competitive differentiator.
• Discovery Innovation: Improved navigation, recommendations, and AI-driven personalization will be critical to reducing churn.
• Parks Associates expects further consolidation and deeper integration across streaming portfolios as competition intensifies.

The Streaming Video Tracker is a comprehensive tool that tracks the streaming video services industry. This research provides extensive profiling for streaming video services in the US and Canada. It also estimates subscribers, viewers, and transactional users, including those that do not publicly release customer figures.

More information is available at https://www.parksassociates.com.

DALLAS—As cord cutting continues and pay TV operators look to find ways to hang onto existing subscribers, Parks Associates has released a new survey that highlights the top reasons for keeping a pay TV service.

The white paper, “Unified Streaming: Unlocking Next-Gen Advertising”, developed in partnership with Philo found having access to live programming was one important factor, with 44% saying they wanted access to live news and programming and 39% reporting that they wanted live sports.

Another important factor was the advantages of having a unified video platform that bundles services and aggregates programming. About 38% cited the fact that they bundled video packages with internet access; 33% of pay-TV subscribers say they keep pay TV services because they can find more of the content they want all in one place.

The shift in consumer sentiment towards appreciating the value of bundles and aggregated content is somewhat ironic given the fact that bloated costly programming packages and bundles were one of the early factors driving cord cutting.

"Aggregation is now a strategic advantage," said Elizabeth Parks, president and CMO, Parks Associates. "Unified platforms simplify discovery, deepen engagement, and provide advertisers with more consistent measurement and targeting capabilities. A key finding of our research shows the strength of streaming TV (vMVPD) audiences as a foundation for next-generation advertising."

Other key findings include:

• The average US internet household subscribes to 5.3 streaming services, contributing to growing complexity and "decision fatigue."
• More than 300 streaming services exist in the US market, reinforcing fragmentation challenges.
• Streaming TV is the anchor for the unified video platform, and its users are far more likely to engage with interactive ad formats, creating new opportunities in advertising innovation:
• 55% of streaming TV subscribers are interested in clicking on items in content for more information vs. 31% of non-vMVPD subscribers.
• 51% are interested in clicking on items in ads vs. 27% of non-users.
• 49% are interested in shopping for special merchandise/memorabilia related to a show or sporting event vs. 23% of non-users.

"vMVPD subscribers, like Philo's lifestyle and entertainment viewers, are watching longer than nearly anyone else in streaming. What this research confirms is what our advertising partners already see in their results: sustained, engaged viewing creates some of the strongest environments for CTV advertising," said Reed Barker, head of advertising, Philo.

The research also highlighted the growing importance of hybrid monetization models, combining subscription, ad-supported, and transactional offerings. These models allow providers to balance profitability with audience growth while delivering more flexible viewing experiences.

In addition, the white paper identifies lifestyle content as a major opportunity for advertisers. These audiences show strong alignment with commerce-driven advertising, with higher-than-average mobile purchasing behavior and interest in interactive features.

DALLAS—As pay TV operators continue to struggle with cord cutting and streaming platforms seeks to retain fickle consumers who regularly cancel subscriptions, a new study from Parks Associates takes a deep dive into consumer loyalty, engagement levels with various services and the factors that motivate them to either subscribe or drop a service.

Understanding those issues are particularly important for streaming services and programmers facing high marketing costs to attract consumers in an increasingly fragmented streaming landscape. A better understanding of their willingness to pay for multiple services and their long-term loyalty could boost profitability and reduce marketing costs, the researchers noted.

The new Parks survey found that 60% say the main reason for cancelling pay TV services is to save money and reduce monthly bills. In contrast, programming seems to pay a major role in decisions to start and retain streaming services. About one quarter (23%) of consumers reported cancelling streaming subscription services because they finished the show they were watching. Likewise, the top reason to subscribe, wanting a specific program/event, recently rose from 27% to 32%.

The survey also ranked the new promoter score of various streaming services. The score measures how likely subscribers are to recommend (or promote) a service to someone else on a scale of 1 to 100. By that measure, which provides a rough approximation of the value consumers see in a services, Netflix toped the survey, followed by Discovery+, HBO Max, Fox One and ESPN+. Peacock ranked last.

This research explores engagement trends in video services, measures the impact of exclusive content and original programming, and quantifies consumer demand for interactive and personalized experiences. This report provides the insights platforms need to balance content investment with sustainable business models and ensure long-term profitability.

More information is available here.

LAS VEGAS—Parks Associates has released new consumer research from its “Tech Ecosystem Consumer Insights Dashboard” at CES 2026 showing that smart TVs are the dominant gateway for streaming video in U.S. households.

The new data indicates that 61% of U.S. internet households use a smart TV as their primary streaming video device, continuing the shift away from streaming media players, gaming consoles and other connected devices.

Among smart TVs, the research found Samsung’s Tizen operating system leads the smart TV market—34% of smart TV owners have Samsung Tizen OS as their most-often-used smart TV.

But the study also found that this market remains highly fragmented, with increased competition from Roku, LG and Vizio.

When accounting for all primary connected TV (CTV) devices in US internet households, including streaming media players and game consoles, Roku takes the lead as most-used at 28%. Roku has traditionally led in the streaming media player category and has steadily increased its share in the smart TV space, growing from 8% in 2020 to 18% in 2025.

The findings from 8,000 U.S. internet households underscore how control of the TV experience is consolidating at the OS layer, the researchers said.

“Smart TVs are the default way consumers access video, and so the OS has become the central point of competition,” said Jennifer Kent, senior vice president and principal analyst, Parks. “Samsung’s leadership reflects the strategic value of platform scale, particularly as advertising, subscriptions, and service integration move directly into the TV interface.”

PLANO, Texas—Even though streaming is an increasingly mature business, Parks Associates has released a new report projecting steady but moderate growth across subscription video services, with total TV and video subscriptions climbing from 719 million in 2025 to 765 million by 2030.

Meanwhile, total subscription TV and video revenue will rise from $186.5 billion in 2025 to $190.7 billion in 2030 in the U.S.

The data comes from its latest Subscription Video Forecast: 2025–2030, which offers a comprehensive outlook on the future of the U.S. TV and streaming video market.

The researchers stressed that the new forecast highlights a maturing yet resilient market that is being shaped by ongoing consumer migration toward streaming, the rapid expansion of ad-supported tiers and the continued contraction of traditional pay TV services.

The average monthly spend per TV household on subscription TV and video will grow from $101.25 in 2020 to a peak of $122.74 in 2028, mainly due to rising prices, before a slight dip to $122.04 by 2030. This steady increase assumes consumers are willing to pay more for premium content, bundled services, and multiple subscriptions.

"As the U.S. video market matures, growth is no longer about adding new households — it's about optimizing value," said Michael Goodman, research director at Parks. “Consumers are stacking more services, gravitating toward ad-supported tiers and demanding more flexibility. Our model shows a stable but fundamentally transformed market where streaming is the economic engine and pay TV becomes a smaller, more-specialized segment.

The Subscription Video Forecast combines Parks’ proprietary research with a multilayered quantitative modeling framework that covers the following areas:

• Total U.S. TV and streaming video subscription trends.
• SVOD household adoption and service stacking.
• Ad-supported tier growth and revenue modeling, by major service provider.
• Pay TV subscriber and revenue declines by service provider.
• Shifting consumer value perceptions and market saturation.
• Strategic implications for operators, streamers, and hybrid platform providers.

More information is available on the Parks Associates website.

PLANO, Texas—Parks Associates has released new research showing just how important sports is to both streaming subs and major streaming platforms. It's data shows that 38% of US internet households now subscribe to at least one sports-specific streaming service. That is more than nine times higher than it was in 2019, when just 4% subscribed to a sports streaming service.

The firm also reported that the NFL is the most popular sport, with 82% of sports viewers in US internet households regularly watching NFL content during the season.

"Sports have become the backbone of live streaming adoption," said Michael Goodman, senior contributing analyst, Parks Associates. "The ability to deliver interactive, data-driven, and personalized experiences is changing how audiences connect with their favorite teams and leagues. Our research illustrates the huge potential for new monetization models as engagement deepens across connected screens."

Pure-play streaming platforms, such as Netflix and Amazon, plus hybrid agreements with platforms such as NBC/Peacock, now account for between one-quarter to one-third of the NFL's total broadcast revenue, Parks also reported.

The data underscores how live sports streaming is reshaping the economics of leagues, teams, and media distributors, the study noted.

Parks said that Goodman will debut Parks Associates' sports streaming research at Future of Video in the opening session "Survival of the Fittest – Competing in a Fragmented Landscape" on Wednesday, November 19, at 10:00 am. The Future of Video: Business of Streaming, takes place November 18-20 at the Marina del Rey Marriott in California.

The session will highlight the expanding footprint of sports viewership and the rising influence of digital rights. On average, US internet households watch 4.2 different sports in season, spanning major leagues and collegiate athletics. Following the NFL, 55% of US internet households watch college football, 53% follow the MLB, and 46% watch the NBA, with additional audiences for college basketball (36%) and the NHL (30%).

Other consumer research data highlights:

• 52% of NFL and college football viewers engage with interactive features while watching.
• 83% of cricket fans use interactive elements such as live stats or alternate feeds.
• $76 billion is the total value of the NBA's new 11-year media rights deal beginning in 2025–26.
• 26% of NBA TV revenue under the new deal will come from Amazon Prime Video.

At Future of Video, Parks Associates said it will publish and release its S.O.S. State of Streaming report highlighting key 2025 trends, including rising CTV ad spend, a leveling of FAST usage, a rebound in TVOD, ongoing declines in traditional pay TV, steady SVOD spending, overall stabilization in household video budgets, and growing cost-conscious viewing choices.. More information is available at www.futureofvideo.us

DALLAS—Parks Associates has released new data showing just how far the dramatic shift to streaming services has gone in recent years. Currently, more than nine in 10 (91%) of U.S. internet households subscribe to at least one streaming video service, while traditional pay TV has declined to 41% of households, according to Parks.

Parks’ new “S.O.S. State of Streaming” report, to be released later this month at its eighth annual Future of Video: Business of Streaming conference, also shows that consumers take an average of nearly six video subscriptions and spend about $109 per month. The video services market now represents a $147 billion annual economy in the U.S., Parks estimates.

‘“Streaming is no longer just about content access—it's about experience, engagement, and profitability,” Parks Vice President of Research Jennifer Kent said. “The lines between streaming, broadband and commerce are blurring. The television has become a connected platform—one that unites content, advertising, and transaction opportunities in a single experience.”

Parks will host the 8th annual Future of Video conference on Nov. 18-20 at the Marina Del Rey Marriot in Marina Del Rey, Calif. More information on the event and speakers is available at www.futureofvideo.us.

Parks Associates has released new data showing that nearly half (45%) of U.S. internet homes watch free ad-supported streaming TV (FAST) services and 89% of U.S. internet households subscribe to at least one streaming service.

Parks reported that 59% of subscriptions across the eight leading SAVOD (subscription ad-based video-on-demand) services are subscriptions to the basic tier with ads.

The firm released the data in the run-up to the eighth annual “Future of Video: Business of Streaming” event on Nov. 18-20 in Marina del Rey, Calif., which will feature keynote speakers from Charter Communications, Tubi, Verizon Business, Wurl, FloSports and Needham & Co. Parks will release its “State of Streaming (S.O.S.)” report during the event.

Parks also highlighted several trends that will be covered at the event, including:

• Ad spend on CTV surges: Platforms are leaning into addressability and measurement to unlock higher CPMs.
• FAST services level off: After rapid growth, usage of free ad-supported streaming TV dipped to 45% of households in Q1 2025, a signal that advertisers will need smarter targeting and integration to keep audiences engaged.
• TVOD rebounds: Consumers are increasingly willing to rent or buy single events, particularly live sports and tentpole releases, showing demand for flexible monetization options.
• Shift away from traditional pay TV: The greatest losses in spending after the pandemic spike have occurred in traditional pay TV, where spending is shrinking, showing consumers prefer flexibility and new TV options.
• SVOD resilience: Despite competition and subscription fatigue, SVOD spending remains stable.
• Flattening spend: The stabilization in 2025 after declines suggests households have reached a new baseline for video spending.
• Cost-conscious choices: Consumers are optimizing their streaming mix, possibly rotating subscriptions or cutting redundant services to manage costs.

More information is available here.

DALLAS—YouTube, TikTok, Twitch and similar platforms play a central role in consumers’ overall experience with television, according to new research from Parks Associates.

The research group’s newly released “Streaming Video Tracker,” found social video now accounts for nearly five hours of weekly TV video, or 20% of all video consumed on TV—more than the time spent watching pay TV or broadcast video. The tracker examines the impact of creator-driven media on the video ecosystem and the importance of social video for streaming services

Other findings:

• A generational shift is underway. Among consumers ages 18–34, social video nearly matches SVOD viewing on TVs and exceeds SVOD on mobile devices, with 40% watching more than 15 hours per week.
• YouTube dominates. YouTube is the top social video site and the most popular streaming pay-TV service, with about 9.3 million U.S. subscribers to YouTube TV. Its Shorts platform is emerging as a cross-device driver of creator engagement.
• Streaming crossovers are occurring. High-profile deals, such as MrBeast's $100 million partnership with Amazon MGM Studios and Tubi's 2025 launch of "Tubi for Creators," reflect the growing integration of creator-led content into mainstream streaming catalogs.

"As the streaming market matures, consolidation and aggregation are reshaping the competitive landscape," said Elizabeth Parks, president and CMO of Parks Associates. "Platforms are bundling creator-led, studio and niche content into unified experiences to keep viewers engaged across formats."

Parks Associates will also host "Consolidation & Aggregation: Transformation of Streaming Services & Technologies," a Future of Video conference virtual session Aug. 21, noon-1:30 p.m. CDT. The session will explore the strategic mergers, acquisitions, partnerships and technologies defining this trend, along with their implications for market players, Parks Associates said.

More information about the newly released report is available on the company’s website.

More information about the Future of Video session is available on the company’s website.

DALLAS—A new study from Parks Associates highlights the appetite for sports content on streaming services and documents their importance to the industry with survey data showing these consumers are the biggest spenders for subscription services.

Parks’ newly released new research, “Streaming Live Sports: Where Opportunity Meets Complexity”, which was done in partnership with InterDigital, explores the business and technical challenges of streaming live sports and outlines strategic insights for navigating this rapidly evolving landscape.

The survey finds that one third (33%) of U.S. internet households subscribe to a direct-to-consumer (D2C) sports-specific streaming service. Forty-three percent of consumers in U.S. internet households classify themselves as "Sports Viewers," and 40% of them watch sports only via streaming services.

"The sports media landscape is transforming, as sports programming transitions from traditional broadcast and cable networks to streaming," said Michael Goodman, senior analyst, Parks Associates. "Sports fans now have more ways than ever to engage with their favorite teams or sports. Many niche sports and out-of-market matches, previously unavailable, are now easily accessible, which can expand the sports audience, and providers have new opportunities to engage viewers in interactive activities, such as multicasts, live chats, and in-game betting, provided the experience is easy and seamless."

The study also stressed that as games and events shift online, streaming services must navigate a complex web of technical challenges that can impact the viewing experience, many of which overlap. These include, but are not limited to, bandwidth limitations, latency, buffering, scalability, and device/platform compatibility, the researchers said.

"Sports viewers should not have to deal with technical issues when watching their favorite sports teams. The broadcast and streaming ecosystem needs to work together to alleviate pain points or risk damaging their reputation for future events," said Lionel Oisel, head of video labs, InterDigital. "While streaming services need to think holistically about the challenges that come with live video streams, more advanced video codecs can significantly reduce buffering and latency and improve the overall user experience."

The study also included these findings:

• Among "Sports Viewers," 40% watch sports only via streaming services, including general SVOD (subscription video on demand) services, sports-specific D2C services, streaming pay TV services, and social networks. An additional 30% watch sports content via both streaming and broadcast/antenna or traditional pay-TV services.
• 89% of US internet households subscribe a subscription-based streaming platforms, and 33% subscribe to a D2C sports-specific streaming service, such as NFL+, NBA Leage Pass, MLB TV, ESPN+, UFC Fight Pass, DAZN, Willow, and F1 TV.
• D2C sports service viewers are the heaviest spenders on streaming video services; they spend an average of $111 per month on all streaming subscriptions.

"As traditional pay-TV services continue to shed subscribers, the economics of sports broadcasting are changing. Streaming creates new revenue opportunities for both sports leagues and streaming services," Goodman said.

The research is available for download here.

WILMINGTON, Del.—As the world of television sports continues to evolve, sports fans are increasingly turning to streaming via digital platforms, and parting ways with traditional broadcast and cable. But streaming services must deal with technical issues such as latency and buffering, as over half (57%) of sports viewers face challenges when streaming sports.

This is according to a new paper released by InterDigital, a wireless video and AI technology research and development company, and research firm Parks Associates. The report, “Streaming Live Sports: Where Opportunity Meets Complexity”, reveals how streaming infrastructure must evolve in line with changing consumer viewing habits, especially with streaming players increasingly paying for sports broadcasting rights.

The paper, titled “Streaming Live Sports: Where Opportunity Meets Complexity,” explores how people consume live sports entertainment, from broadcast to subscription video-on-demand (SVOD) services, direct-to-consumer (D2C) subscription models, pay-per-view, and paywall systems. It also covers the pain points viewers are facing and how the streaming ecosystem can keep up with demand.

With streaming subscriptions on the rise and cord cutting continuing, there are distinct viewing habits emerging among different demographics:

• 42% of US internet households paid for a traditional pay TV service in Q1 2025, down from 62% in Q1 2020.
• Over half (55%) of SVOD households subscribe to five or more SVOD services.
• Sports fans are among the most valuable viewers, spending an average of $88 per month on streaming services, compared with $64 per month by those who don’t watch sports.
• Two-fifths (40%) of sports viewers under 35 watch sports on social media platforms, compared to just 13% of those aged 55+.
• More female sports fans than men stream sports exclusively (49% vs 42%).
• 32% of sports viewers find placing bets in a streaming service attractive (spiking to 57% of sports viewers aged 25-44).

More than half (57%) of sports viewers face challenges when viewing live sports, including nearly a third (30%) highlighting that they did not subscribe to a streaming service airing a sporting event they had planned or wanted to watch. Other more technical challenges that viewers face include buffering and overall image quality. Specific challenges viewers cited include:

• Almost one in five (18%) sports viewers reported poor quality video from a streaming service.
• Just under a third (31%) of sports viewers aged 18-24 cited poor video quality (freezing, buffering, etc.), insufficient bandwidth for high quality streaming (25%), and lag (20%) as common problems when streaming sports.
• Poor video quality is a particular problem for younger age groups who enjoy interactivity while watching sports, such as multi-view and in-game stats.

Poor video quality is increasingly impacting the sports viewing experience, and the paper argues that one solution is more efficient video codecs. For example, HEVC is well-suited for high-resolution content like 4K, where its compression efficiency helps reduce file sizes and improves bandwidth usage.

It is also designed to handle the increased data demands of HDR video, which expands the range of colors and contrast in video. H.266 (VVC) is a next-generation solution to these challenges, offering even higher compression efficiency, improved video quality, and support for ultra-high resolutions particularly suited to streaming high-resolution content over mobile networks and broadcasting in ultra-high definition.

“Sports viewers should not have to deal with technical issues when watching their favorite sports teams. The broadcast and streaming ecosystem needs to work together to alleviate pain points or risk damaging their reputation for future events,” said Lionel Oisel, Head of Video Labs, at InterDigital. “While streaming services need to think holistically about the challenges that come with live video streams, more advanced video codecs can significantly reduce buffering and latency and improve the overall user experience.”

“The sports media landscape is transforming, as sports programming transitions from traditional broadcast and cable networks to streaming,” said Michael Goodman, Senior Analyst, Parks Associates. “Sports fans now have more ways than ever to engage with their favorite teams or sports. Many niche sports and out-of-market matches, previously unavailable, are now easily accessible, which can expand the sports audience, and providers have new opportunities to engage viewers in interactive activities, such as multicasts, live chats, and in-game betting, provided the experience is easy and seamless.”

The full report, “Streaming Live Sports: Where Opportunity Meets Complexity,” is available to download here.

DALLAS—Ad-supported subscription-based streaming services will increase in popularity over the next four years, reaching 278 million viewers by 2029 according to Parks Associates.

With Nielsen’s estimates of 315 million TV viewers nationwide (representing almost 97% of U.S. households), this means more than 88% of TV viewers will be watching ad-supported SVOD.

The rise in adoption of ad-based services creates a foundation for additional revenues as well as opportunities to engage viewers in new ways through more interactive and personalized experiences, Parks says. Shoppable features and direct transactional opportunities can turn social and video content into a more direct sales channel, blurring the lines between entertainment, content consumption, and e-commerce.

"Industry players can take productive steps today to advance the interactive TV experience for viewers and advertisers by connecting workflows, making effective use of available data, and optimizing user experience elements for interactivity," said Jennifer Kent, Vice President, Research, Parks Associates. "Success involves building sustainable, scalable solutions for the long term rather than quick, band-aid solutions that address only immediate challenges."

A new white paper Interactive & Shoppable TV: Next Wave of CTV Revenues, released in partnership with Adeia, focuses on the service provider opportunity to advance the consumer experience and build on expectations of interactivity and specifically engage in commerce through the TV. It highlights consumer interest, use, and preferences for interactive features across TV and mobile viewing devices and platforms, including shoppable advertisements.

Research highlights include high demand for commerce and advertising in CTV:

• 52% of US internet households are likely or very likely to perform at least one commercial activity through a CTV platform.
• 82% see streaming ads through a combination of free streaming services, ad-based tiers of subscription streaming services, and vMVPD services that feature ads as part of their live/linear bundles of channels.
• 59% subscribe to an ad-based tier of an SVOD service, like Netflix, Disney+, or Peacock.
• 47% watch free ad-based streaming services, like Tubi, Pluto, and The Roku Channel.
• 22% watch streaming pay-TV services, vMVPDs, like YouTube TV, Hulu + Live TV, or Philo.

DALLAS—An increasing number of U.S. internet households are characterizing themselves as “cord cutters” according to Parks Associates' latest research from its Video Services Consumer Insights Dashboard.

According to the report, 56 million (46%) of U.S. internet households are “cord cutters,’ while 12 % are “cord nevers,” who have never subscribed to any sort of traditional pay TV.

The Dashboard research service tracks adoption trends and shifts in the video services market, including households who are disconnecting in favor of free-to-air broadcasts or online video services.

Service providers are adapting by offering competitive pricing, bundling options, and hybrid monetization strategies. The rise of ad-supported video-on-demand (AVOD) and free ad-supported streaming TV (FAST) services shows the demand for lower-cost alternatives, and subscription-based platforms continue to experiment with tiered pricing and content exclusivity to retain customers.

"Cord Nevers represent a unique opportunity for streaming providers," said Jennifer Kent, Vice President, Research, Parks Associates. "By definition, this segment of the market has not paid for traditional pay TV, but streaming services have found a way to monetize a segment that has not previously valued subscription video or has grown up in a streaming-first market, with different conceptions of what subscription video should be."

For leading streaming services, many consumers prefer the basic tier with ads over the more expensive premium tier with no ads; as of Q3 2024, 59% of subscriptions across the eight leading SVOD services are basic tier with ads subscriptions:

• MAX (formerly HBO)
• Netflix
• Disney+
• Discovery+
• Paramount+
• Prime Video
• Hulu
• Peacock

To achieve profitability and strike a balance for consumers, many of the most popular services now operate under a hybrid model, offering both ad-free and ad-supported plans to viewers. Ad-based tiers are cheaper for consumers and more profitable for businesses, making them a win-win for both parties, according to the researcher.

"Consumers are worn down from continued spending increases in streaming, while years of high inflation are driving consumers to pare down accordingly," Kent said. "This only intensifies the competition among streaming vendors and will fuel more growth of subscription tiers with ads and free ad-based services."

DALLAS—Amazon’s Prime Video remains atop Parks Associates’ annual list of the 10 most-popular U.S. streaming services for the third straight year. Parks bases the chart positions on estimated numbers of subscribers through September 2024 from the firm’s Streaming Video Tracker.

The two streaming leaders maintained their market position from 2003, with Prime Video in the top position above Netflix. Parks Associates said 88% of all households have a streaming service and 42% now use ad-based services, “creating incredible competition for subscription streaming services.”

This year’s top 10 list shows Disney+ taking the third position and pushing Hulu to No. 4. Peacock cracked the top five for the first time, jumping ahead of Max and Paramount+. YouTube Premium held onto its 10th position.

“Tracking the changes at the top of the market over the past five years reveals the extent of rebranding and consolidation shaping this market,” Parks Associates VP, Research Jennifer Kent said. “Showtime, which was in the top 10 back in 2020 and 2021, no longer exists as a standalone SVOD service and is now a premium add-on tier for Paramount+. We expect to see more premium content used to differentiate subscription tiers or create content bundles, giving consumers choice in how to build their packages.”

The chart positions don’t necessarily jibe with budgets, though, with Peacock parent Comcast NBCUniversal spending an estimated $22 billion, followed by Prime Video at $21.5 billion, Netflix at $19.5 billion and Disney at $18.5 billion, according to Filmtake.

DALLAS—Parks Associates has released a study highlighting how a handful of tech giants dominate the platforms used for streaming video and media among U.S. internet homes.

The firm's new study, “Battle of the Platforms: Assessing Connected TV Ecosystems,’ said Roku and Amazon’s Fire TV are the most popular brands of streaming media players purchased, while Samsung is the most popular brand of smart TV purchased. Together, these three brands dominate in terms of consumer viewing habits, with 65% of U.S. internet households naming one of these brands as their primary streaming video device.

The study also found Roku and Amazon are the most popular brands of streaming media players among owners and in U.S. households overall. Both have expanded into smart TVs as well, broadening their overall CTV platform penetration.

“Samsung has a sizable lead in the smart TV market,” Parks President and Chief Marketing Officer Elizabeth Parks said. “The company’s strength in smart TVs earns it the No. 2 position in CTV platform use, even though Samsung does not have a separate streaming media player offering.”

Parks also reported that it will highlight the results of that study and others during its seventh annual Future of Video event, set for Nov. 19-21 at the Marina del Rey (California) Marriot.

“Most consumers prioritize software capabilities, customer service, and hardware specifications when purchasing a new smart TV,” Parks said, “but a cohesive and carefully designed interface within a single operating system can significantly enhance the user experience after purchase and help to increase brand stickiness. At Future of Video, we will address strategies to increase consumer loyalty for these platforms, devices, and streaming services.”

Future of Video hosts hundreds of leaders in entertainment to discuss ad-based and subscription streaming, bundled services and the changes around advertising and video services. More information is available here.

As streaming services struggle to boost profits by raising prices, a new Parks Associates study has found more streaming consumers are opting for basic tiers with ads over more costly, ad-free premium tiers.

Overall, the Parks survey found that ad-based tier subscribers account for 57% of the user bases of the eight leading streaming services, even though those subscribers complain about poor user experiences with long ad breaks and about seeing the same commercials far too often.

“Ad-Based Streaming: Consumer Demand & Engagement,” a Quantified Consumer study of 8,000 U.S. internet households, examines why ad-based services are experiencing a surge in adoption, gauges which services are the most popular and examines household sentiment towards the ad-based experience.

The research reveals that on average, ad-based tier subscribers account for 57% of the user bases of the eight leading streaming services: Max, Netflix, Disney+, Discovery+, Prime Video, Paramount+, Hulu and Peacock, according to Parks Associates’ consumer survey work.

“Many video streaming services, needing to boost profits, continue to raise prices and have rolled out ad-supported plans to give subscribers options,” Parks Associates Research Analyst Sarah Lee said. “In many cases, these ad-based tiers are more profitable for businesses, adding urgency to the need to improve the ad experience for their subscribers.”

While cost is an important factor, the researchers stress that the embrace of ad-supported video-on-demand (AVOD) services goes beyond just saving money. Roughly one-fourth of current AVOD subscribers have adopted this tier to save money, while a similar share of subscribers were attracted by a bundle or a promotion. Additionally, many consumers see the low-priced ad tiers as a low-risk way to try a new service or re-subscribe to one they churned away from.

The Parks research also shows that the end-user experience needs improvement. Users commonly report that the same ads repeat too many times, ad breaks are too frequent and long and the content stops but no ads are shown.

“As services continue to raise prices and viewers shift to ad-supported tiers out of necessity, it is critical that services improve the ad-based experience or risk losing subscribers and the ad revenue that comes with it,” Lee said.

Parks Associates will share this and additional streaming video consumer research at its upcoming Future of Video: Business of Streaming conference, Nov. 19-21 at the Marina del Rey Marriott in Marina del Rey, California.

DALLAS—In the run-up to its Future of Video conference, Parks Associates has released new data highlighting the importance of easy navigation between connected TVs and other devices.

New research from Parks has found most households that own or are planning to purchase a connected TV (CTV) device recognize the benefits of staying within a product ecosystem—53% state it is easier to manage apps and preferences when using devices within the same ecosystem.

With one-third of households planning to buy a smart TV in the next six months, companies looking to capture these households could succeed by emphasizing the ease of navigation across their portfolio and their list of supported streaming apps, Parks reported.

The research noted that Roku has done a particularly good job at this cross-platform CTV effort to attract ad-supported video-on-demand (AVOD) users.

"Customers are looking for an interface that is fast and easy to navigate but can also provide an expansive experience compatible across multiple devices and apps, especially AVOD services," Parks Vice President of Marketing Mindi Sue Sternblitz-Rubenstein said. "At Future of Video, industry experts discuss the latest innovations to meet these demands, plus design and messaging strategies that will resonate with today's streaming households."

"Our data shows Roku has been particularly effective in leveraging its CTV platforms to bring in AVOD users," Sternblitz-Rubenstein added. "Roku device owners/users have high usage rates for The Roku Channel."

The seventh annual in-person Future of Video conference will be held Nov. 19–21 at the Marina del Rey Marriott in Marina del Rey, Calif. It will address new strategies for streaming, internet, and mobile providers to deliver high-quality video services that will retain current and attract new video subscribers.

Parks Associates has partnered with Xailient to issue a new white paper, Video at the Door: Driving New Revenues, that estimates that smart video devices generated $1.3 billion in stand-alone service revenues in 2023 and that those service revenues will jump to $2.4 billion by 2027. 

The study was released at the start of the SCTE TechExpo in Atlanta, where many operators and telcos are exploring technologies that might let them expand their smart home and home security businesses. 

The Parks study assesses consumer demand for these smart devices and services, including video analytics, facial recognition tied to door locks and access control, and the ability to differentiate known people from strangers.  

Stand-alone service revenues are exclusive of revenues generated through a security system and can include services such as video storage or monitoring tied to a smart camera, the researchers said.

“Due to this growing consumer demand for smarter, more comprehensive video coverage and analytics, manufacturers are integrating video into other form factors, including flood lights, door locks, garage control systems, and vehicle dashboards,” said Jennifer Kent, vice president of research at Parks Associates. “The next step is to integrate these capabilities across devices, to deliver a high-quality experience to the consumer.”  

The white paper finds 84% of smart video doorbell purchase intenders and 85% of smart camera purchase intenders want the product they purchase to have AI with facial recognition to identify family and friends. One-third rated this feature as a “must have.”  

“Video smart locks are an opportunity for a brand to upgrade from passive security monitoring to active automation – the door is now literally the gateway to the smart home. For consumers it’s a natural progression, obvious even, from video doorbells to integrated access control. Parks Associates helped us quantify that demand,” said Lars Oleson, CEO of Xailient.  

Many current smart home products use video analytics to detect motion and discriminate between moving objects like cars, tree branches, animals, and humans to determine the most appropriate response. Facial recognition allows a smart home solution to distinguish household members from unknown persons, enhancing value in alarm event verification. With integrated video-lock capabilities, users can grant entrance to the right people at the right time.  

“Many consumers already use facial recognition as an authentication and unlocking mechanism on their smartphone, so smart device manufacturers need to be prepared for consumers to raise their expectations of receiving similar conveniences in other product categories,” Kent said.  

DALLAS—As many streaming services and video distribution companies struggle to expand their reach and develop profitable offerings, a new white paper from Parks Associates and JW Player (JWP) highlights the increased complexity of a video landscape and the ongoing decline of traditional TV.   

The survey found that 67% of consumers watch social video and 50% watch free ad-supported video. But only one-third watch pay TV, and 14% use an antenna to watch over-the-air broadcast. 

In addition, 65% of U.S. internet households report watching video on a mobile phone, a significant increase from ten years ago, when just 30% regularly watched video on a mobile phone.

The research, “Video Delivery: Maximizing Efficiency and Monetization”, addresses the challenges of managing content delivery, user engagement, and content monetization with a fragmented tech stack. In addition, the research addresses how operations can be streamlined for cost reduction, mitigation of operational breakdowns, and faster output of content in a variety of formats to diverse platforms.

"The video streaming business is in a transformative stage," said James Burt, senior vice president of broadcast solutions for JWP (JW Player). "It's full of requirements that change to align with shifts in viewer consumption trends. Streaming management is also technically complex, with broadcasters struggling to balance operational efficiencies with innovation and growth. Yet there are more viewers using digital platforms to consume content than ever before. Streaming companies must review their technology, operations, and productivity and make adjustments to create economies of scale and improve ROI."

These efficiencies are critical given the fragmented market and new mobility around video viewing -- televisions, smartphones, tablets, laptops, exercise equipment, and smart displays are all options today for video consumption, creating a more complex environment for streaming providers to operate, the researchers reported. 

"In the early days of streaming, services were focused on building subscriber bases through low fees, ad-free programming, and high-quality original content," said Sarah Lee, research analyst, Parks Associates. "Now, to fully monetize these efforts, they need to deliver a consistent, high-quality viewing experience that goes across all platforms."

The streaming industry has transitioned to more advertising-based models, to bring in additional revenue alongside subscriptions. Parks Associates' consumer research finds 50% of people who consume video on a viewing device (TV, computer, tablet, or phone) watch a free, ad-supported service (FAST) or ad-based video on-demand service (AVOD) at least once a week. The ads are an equally important part of the experience, as consumers expect ads to be relevant, original, and appropriate to the viewing platform.

"To preserve competitiveness and optimize operations, advertisers and content providers must acknowledge the necessity of investing in modern strategies and technologies that allow for proactive rather than reactive pivots," Lee said.

DALLAS—Parks Associates' has released new data from its recently released Tech Ecosystem Dashboard that show Roku continues to be the most popular brand of streaming media players, with Amazon holding down second place. 

Parks Associates' consumer survey of 8,000 internet households found that 43% of streaming media player (SMP) owners report using Roku the most often. Thirty-five percent of SMP owners report they use an Amazon-branded SMP the most often to watch video content.

"Historically, Amazon and Roku have dominated the streaming media player market, and our research shows their dominance continues," said Sarah Lee, research analyst, Parks Associates. "Other competitors such as Apple and Google have held on to their respective shares but do not show much growth as of yet."

The study also found that streaming media players have increased their market share in US households, with 46% of US internet households owning at least one of the devices, but they trail smart TVs, which are in 68% of US internet households. SMPs are also behind smart TVs as the most commonly used device to watch video.

Among US internet households that own at least one internet-connected entertainment device, 56% consider the smart TV as the primary device for consuming video, while 34% consider an SMP as their primary viewing device. Together, smart TVs and streaming media players are the primary viewing device for 90% of households, while other devices such as gaming consoles and smart Blu-ray players are increasingly squeezed out.

"Today, smart TVs are much more affordable, as are streaming media players," Lee said. "These devices offer consumers cost-effective solutions as well as an ecosystem-consistent experience."

Consumer Insights Dashboards present survey-based consumer research that tracks foundational market metrics, such as product or service adoption, household spending intentions, churn, and key tracking metrics on leading industry players. This research is available for purchase.

Parks Associates will share key findings from the firm's consumer research on entertainment devices and services at the Future of Video virtual session "State of Streaming Services and Future of Entertainment," August 15, 2 PM CT U.S. More information is available at  https://www.parksassociates.com  .

DALLAS—Parks Associates has launched its new Broadband Market Tracker with data showing that SpaceX's Starlink satellite broadband residential service has already attracted some 1.3 million subs in the U.S. 

The estimate is notable because it means that Elon Musk's Starlink service has overtaken long-time satellite broadband incumbents HughesNet and Viasat. As of Q1 2024, Starlink is the 12th largest residential internet service provider in the US market. The company is on track to become a top 10 residential ISP by market share by the end of 2024, Parks reported. 

"This year, significant changes in the broadband market include regulatory shifts, increasing competitiveness from wireless options, and mergers and acquisitions," said Kristen Hanich, research director, Parks Associates. "The end of the Affordable Connectivity Program has challenged both ISPs and consumers, and growing price sensitivity is driving renewed interest in service bundling. This research will follow this and other trends and measure their impacts on the bottom line of subscriber counts and revenues for all major providers."

As part of the new broadband market tracker, Parks also released a chart showing that nearly one fifth of all home broadband subscribers now have broadband speeds of 1 Gpbs or faster. 

The new annual research subscription service from Parks profiles more than 25 market leaders in the US and Canadian residential internet service markets. The Broadband Market Tracker delivers quarterly reports that analyze market trends, profile market leaders, and provide estimates for residential internet subscribers and revenues for the North American market. More information is available here. 

DALLAS—U.S viewers may have finally reached their limit when it comes to spending on subscription streaming services. 

In a new report from Parks Associates, the researcher reports a significant drop in spending and a declining number of services viewers subscribe to. 

The firm's latest research from its Video Services Dashboard reports a dramatic 30% drop in spending for streaming SVOD services, with the average U.S. internet household spending about $63 per month on OTT SVOD services, down from $90 in 2021.

The results shouldn’t be a surprise considering the recent launch of ad-supported streaming subscriptions from Netflix, Amazon and Disney as well as the increasing popularity of FAST channels,

"Consumers are spending less, but rather than go without, many are using ad-based alternatives to save on costs," said Sarah Lee, Research Analyst, Parks Associates. "A service needs to provide unique and ongoing value if it is to charge a premium."

Households are now stacking fewer streaming services—in Q1 2024, 20% of US internet households report paying for nine or more services, vs. 29% in Q3 2023. The overall average number of streaming video service subscriptions per household has dropped below five, and 32% of households that cancelled a service in the past 12 months cite a need to cut household expenses as the reason.

"All categories of household services face challenges, as consumers reevaluate their spending and subscriptions," said Elizabeth Parks, President and CMO, Parks Associates. "A focus on value and education, the user interface, and the customer experience is what will drive the next generation of services in the home."

The results are in line with Park’s previous research last fall that reported a steep 25% decline in the number of streaming subscriptions since 2021 with nearly one-third (31%) of households having used free ad-based services by the end of 2022. 

DALLAS—Consumers who subscribe to streaming services are the least likely to cancel Prime Video among all major providers, according to Parks Associates’ Streaming Video Tracker, which found that Prime’s so-called “churn rate” is 8% while streaming service Discovery+ is nearly at 43%. 

Parks recently updated its Streaming Video Tracker, which now tracks churn data for 89 total services, of which 85 are SVOD services. Its most recent churn data is from its quarterly consumer survey of 8,000 internet households.

Prime’s unique position in the streaming universe (a “value-added” service for subscribers of Amazon Prime) is the reason for the low churn rate, according to Eric Sorensen, Director, Streaming Video Tracker, Parks Associates, who adds that streaming king Netflix is helping lower its churn rate by providing more subscription options and content. 

"Churn is part of the standard business model, but companies are working hard to minimize it and keep consumers engaged longer," said "Amazon Prime Video has held the lowest churn rate for the last two years because it is included with Prime; however, Netflix continues to creep closer and reduce churn by adding more tiers of service and syndicated content."

Streaming Video Tracker analyzes market trends and profiles for more than 300 over-the-top video services in the US and Canada. It also estimates subscribers, viewers, and transactional users for these OTT services, including those that do not publicly release customer figures.

U.S. Internet households now consume an average 43.5 hours of video per week across all viewing devices. That’s an increase of more than six hours in 2020, when the average was 37.2 hours, according to Parks Associates.

The new Parks research also found that 61% of these households watch paid streaming services on a TV set, consuming an average of 7.5 hours per week of content from these sources. Worth noting: 50% of people who consume video on a viewing device (TV, computer, tablet, or phone) watch a free, ad-supported service (FAST) or ad-based video on-demand service (AVOD) at least once a week.  

This data was released during the 2024 NAB Show by Parks Associates in a new research report entitled, ‘The Viewer Journey: Navigating Streaming Options’. The study surveyed 8,000 consumers and 10,000 internet households to find out how viewers access video content across broadcast, traditional pay TV, and streaming video models, including SVOD, AVOD/FAST, TVOD, and vMVPD (streaming TV) services. 

“Video-viewing households report watching on average more than 21 hours per week on a TV, accounting for half of their viewing hours,” said Sarah Lee, research analyst at Parks Associates. “Video consumption on a cell phone continues to rise—excluding social video sources, US internet households spend 6.5 hours per week watching video a smartphone and 3.9 hours on a tablet. TVs are still the main video-viewing device, but platform usage continues to diversify.”  

The Viewer Journey lists paid streaming services as the most popular content type consumed across TV, mobile, computers, and tablets, but noted households watch several different types of services across their devices over the week. 78% of households report watching an SVOD service weekly, followed by 67% of households who watch user-generated content found  onYouTube and other sources. 

“The flexibility and convenience that on-demand services offer is highly appealing to viewers, but many households enjoy a balance between finding something to watch and watching what they find,” Lee said. “Given the popularity of FAST and user-generated content, consumers may soon decide they do not need to subscribe to as many services as they do now.”  

DALLAS—Uh-oh. Streaming video service subscriber churn is approaching 50%, and an important measurement of customer satisfaction and loyalty has fallen below the high mark achieved during the pandemic, according to market research and consulting firm Parks Associates.

Streaming service providers are facing several challenges, including economic headwinds, pressure to prove their business models and decision-making regarding business ownership and revenue models, it said.

One example is Netflix, which registered an NPS of 55 in 2021 and now sees the value at 40, the company said.

"It is critical to build a loyal client base, deliver a great user experience, and provide unique services and content," said Eric Sorensen, director of Parks Associates’ Streaming Video Tracker. "NPS and churn can reveal which strategies achieve these goals. As new partnerships and ownership form in the industry, there are many metrics to track and review to understand the impact from previous quarters' efforts."

The researcher will examine churn, subscriber growth and Net Promoter Scores (NPS)—the measure of loyalty and satisfaction, during a webinar March 14 at 1 p.m. Central Daylight Time. 

The webinar also will offer insight on recent industry developments, such as the partnership between ESPN, Fox and Warner Bros. Discovery, consumer sentiment and viewing behavior, Parks Associates said.

To register for the webinar, visit the company’s website.

More information on its Stream Video Tracker is available online. 

DALLAS—Nearly half of pay-TV subscribers are interested in using their TV to control smart home control and security features, according to a new survey from Parks Associates.

In its new report, Video Services: Shifting Demand, which surveyed approximately 8,000 U.S. households, 46% of pay-TV subscribers find emerging home control and interactive features, provided through their TV service, “appealing or very appealing.” 

"This data highlights a significant interest in smart home technology integration within the pay-TV market," said Elizabeth Parks, President and CMO, Parks Associates. "The home ecosystems continue to overlap, creating new opportunities to expand control and enhance the user experience. Consumers expect and want more interconnected and technologically advanced home entertainment systems."

"Video Services: Shifting Demand" details shifting consumer preferences, with historical trending data on adoption, satisfaction, and churn for pay-TV and streaming services. It also details top causes of service churn and consumer receptivity to new service features and retention incentives.

The most popular feature—which garnered 66% support among subscribers—is the ability to stream content from an online video service via a pay-TV service, with 49% ranking it "very appealing." This type of bundled offering would enhance the value of pay-TV services by simplifying the navigation process for its users, Parks said.

Most major pay-TV providers like Comcast's Xfinity Home and Cox's Homelife Smart Home offer home security services but not via their pay-TV services. Others, like Charter, for example, abandoned its smart home service several years ago, opting instead to partner with services like Ring and Abode.  

Many television manufacturers, such as Samsung and Roku, offer compatibility with smart home devices, but having this feature through the pay-TV service can offer a new level of convenience for the household, Parks said, adding that such appeal is high particularly among households with a security service—65% find home control through their pay-TV service appealing.

"The interest in connected home services opens up new markets and opportunities for partnerships between traditional pay-TV providers, tech companies, and home automation system manufacturers," Parks said. "These collaborations will lead to innovative service bundles, combining entertainment, information, and home management in new and valuable ways."

After smart home management, the remaining most popular enhanced features for pay-TV services include cloud gaming, T-Commerce, interactive polls, and sports betting.

DALLAS—Parks Associates has released a new report that finds that, even as streaming becomes the primary means for video consumption, 47% of executives in the streaming industry are lacking the data needed to make good business decisions. 

Parks collaborated on the custom research with SymphonyAI—a provider of AI-based data management solutions. The report, "Streaming Content Performance: Executive Insights | 2024 State of the Market," concludes that data on content performance, revenue, and audience engagement is key to successful services, but current fragmentation in the market makes it difficult for companies to collect and aggregate the information needed.

"The need for media companies to successfully manage, optimize, and predict content revenue performance across all distribution models, including FAST, AVOD, SVOD, TVOD, pay TV, and broadcast, grows more urgent by the day," said Mark Moeder, president of the SymphonyAI media division. "Access to accurate, complete, and current data is the cornerstone for making good business decisions."

This custom report shares findings from extensive research and in-depth surveys and interviews of senior executives from streaming service providers, networks, and content sellers. These executives acknowledge that profitability is the focus of the streaming market in 2024, which includes increasing advertising, raising prices, and making more bottom-line decisions regarding content acquisition and production. It also details the tools they plan or want to use in 2024, including AI (artificial intelligence) to overcome data-fragmentation challenges.

"Nearly half of industry executives do not have the data they need, in the way they need it, to make the best business decisions possible," said Jennifer Kent, vice president, Research, Parks Associates. "Even when that data is available, it is often difficult or impossible to collate and compare—71% of industry executives say it is difficult to see all of their streaming-related data in one place."

Companies that own or aggregate television and video assets distribute their content across 18 platforms, on average, so fragmentation in their data sources creates numerous and ongoing headaches for them when trying to make informed decisions about their services and subscribers, Parks says. For example, 78% of streaming executives said content performance by title is or would be "very useful" but just 46% said that data is fully accessible to them.

The white paper is available for download here. 

A December 2023 report from Parks Associates revealed a couple of somewhat surprising research findings: 20% of U.S. internet households own a TV antenna, and 12% of those that don’t plan to buy one in six months.

OTA has long seemed like the perfect complement to streaming services for cordcutters, and the popularity of antennas among internet households appeared to confirm that notion. But why now? This has long been the case.

I interviewed Alan Bullock, author of the Parks Associates “ATSC 3.0: Impact and Opportunity for Video Services” report to find out and to explore a little deeper where NextGen TV stands.

(An edited transcript.)

TVTech: Your latest report finds OTA popularity is growing among internet households. Presumably, many of these households already stream content. So why the uptick in antenna use? Is it an economic factor like inflation that is driving viewers to over-the-air linear television to complement free streaming options like FAST and AVOD channels?

Alan Bullock: That wasn’t the main focus of the report, but peripherally, I do think inflation is causing people to reevaluate the number of services that they subscribe to. Over the last few years, especially during COVID, the average number of services people subscribed to has crept up.

Our latest research finds that close to half of internet households that subscribe to streaming services subscribe to at least five. Of course, most if not all of those services have been implementing price increases. So, the total cost is creeping up.

I think as people are affected by inflation, they're looking for ways to cut back. Certainly, if they recognize the ones they're not watching, they may decide to pare back.

TVT: Does that mean it also is encouraging viewers to consider free OTA?

AB: I think you’re right. We asked how many had an antenna and how many intended to buy one. That is one of the selling features of an antenna as you know, the plethora of free digital channels that are on the air. Now there are the new features ATSC 3.0 enables. They offer additional reasons to buy and use an antenna if the consumers know about them.

TVT: How aware is the general public about ATSC 3.0/NextGen TV?

AB: Unfortunately, it’s very low. 

TVT: How low?

AB: This is Alan-based, not research-based. We haven't gotten into this specific survey questions on ATSC 3.0 technology or NextGen TV as it's to be marketed to consumers. But I think 10% [knowing about 3.0] would be generous, especially if you're talking about a working knowledge of what it actually does for them.

People may have heard of NextGen TV, and if they're paying any attention in the store they may see it on most if not all of the Sony TV boxes and a few of the models from other manufacturers.

So, they may have seen the term, but then they get mixed messages from the retail employees who may or may not actually know what it’s all about. I’ve asked a few, and they say, “Well, it’s a better picture,” or “It’s a better quality stream,” or “It’s a better quality image and sound.” All of those answers are not untrue. But they are far from the complete picture.

TVT: So, people don’t know what NextGen TV does.

AB: I would say they don’t.

TVT: How is the public finding out about what 3.0 offers at this point?

AB: The plan is for some industry groups [like Pearl TV] and some station ownership groups as they launch 3.0 in various markets to do some media campaigns. And I understand that there are plans to do additional campaigns.

I live in Raleigh, N.C. We’ve got ATSC 3.0 on the air. I don’t recall seeing any marketing efforts here.

TVT: There has been the understanding among broadcasters that ATSC 3.0 tuners in new TVs are along for the ride with many new models. That means that over time the audience will be populated organically with NextGen TV receive capability—a solution for not having a DTV conversion-like government mandate, extra channels for simulcasting and a conversion box coupon program. Is that understanding about being along for the ride correct?

AB: I would say it’s correct. The consumer electronics industry is looking at 10 million NextGen TV sets having been sold, and I have no reason to question that number. But I would dare say that most of the consumers who bought one probably don’t realize they have NextGen TV capabilities built into their sets and what it can do for them.

TVT: OK. If it’s not consistent, memorable marketing, if it’s not a well-informed retail sales force, if it’s not a clear understanding of its benefits by consumers, what is driving the sale of NextGen TV sets?

AB: I don’t know. I would be hard pressed to say anything is driving the sales of NextGen TVs. Like I said, a lot of people, if they are getting a higher end 4K television might be getting NextGen TV. Certainly, if they’ve buying a Sony 4K television, they’re getting NextGen. 

But I am not sure there is anything that’s causing consumers to run out and say, “I’ve got to have one of those NextGen TVs.”

DALLAS—New data released by Parks Associates during CES2024 shows that consumers are connecting a record number of devices in their homes to the internet, with the average number of connected devices per U.S. internet household reaching 17 in Q3 2023.

Park’s Consumer Electronics Dashboard, an ongoing service that visualizes the most important metrics for consumer electronics (CE) devices in the home, also found that for the first time, smartphone ownership surpassed TV ownership, with 90% of households reporting ownership of a smartphone compared to 88% with a TV. The research also found that 92% of US households have fixed or wireless internet service at home. 

"Smartphones are ubiquitous now, and connected consumer electronics such as wireless earbuds, tablets, and smart TVs are commonplace," said Sarah Lee, Research Analyst, Parks Associates. "Today, these devices are essential for entertainment purposes and daily personal communications, which can include school, work, and family. This necessity drives continued purchases, as every year CE companies roll out innovative and advanced models that drive the consumer desire to upgrade."

Parks also found that among US internet households:

• 89% have a streaming video service
• 66% have a smart TV
• 42% have at least one smart home device
• 31% have a security system
• 39% have a smart watch

The research also found that consumer spending continues to show remarkable resilience. After a brief pause early in 2023, consumers' enthusiasm for consumer electronics products rebounded at the end of the year. Purchase intentions for popular entertainment devices such as gaming consoles, streaming media players, and VR headsets have increased compared to 2022 and now resemble 2021 levels, which was the height of the pandemic.

"Economic conditions and fear of a recession previously stalled purchases of CE categories," Lee said. "But higher intentions to purchase are likely a reflection of prolonged delayed gratification, the end-of-year holiday season, enticing retail promotions, and hope for continued economic improvement in 2024."

DALLAS—New data from Parks Associates highlights some of the difficulties facing both pay TV operators and streaming companies going into the new year. 

While pay TV video services were once available in over 80% of all U.S. homes, the latest update of Park’s Streaming Video Tracker reveals the ongoing adoption of streaming services has eroded the exclusive reliance of pay TV for video content to the point where just 5% of US internet households now only have a pay-TV service. 

However, the data also indicates that streaming services face their own problems with fickle consumers who jump or churn in and out of streaming subscription.

In the newest Parks data, the average annualized industry churn rate for streaming services is 50%, meaning many streaming services are also struggling to keep their customers.

"Sixty-five percent of internet households have a smart TV," said Eric Sorensen, director, Streaming Video Tracker, Parks Associates. "This platform interface serves as the entry point for many households to their content services. Competition for attention is extreme, while the continued rollout of the ATSC 3.0 standard gives viewers even more options, so in 2024, we will see increased consolidation, mergers, and acquisitions as all providers must find ways to innovate alongside the greater emphasis on profitability."

Researchers from Parks also noted that traditional telcos faced with pay TV sub losses are exploring new ways to get their products in front of streaming consumers with services such as Cox's Neighborhood TV. Cox is positioning this hyperlocal streaming service to expand its influences in its communities and as a gateway to attract consumers to its phone, internet, and TV bundle. Station groups such as Sinclair and Hearst have also launched local streaming services to leverage the consumer desire for local content in this age of streaming.

"The hyperlocal approach clearly attracts interest from consumers," Sorensen said. "With the increase of AVOD business models, consumer adoption indicates that relevance is a key factor, namely consumers are likely to turn off services if the service and messaging are repetitive and irrelevant to them. Even manufacturers recognize the need for personalization—for example, LG will be displaying its MyView smart monitors at CES 2024, which the company designed to deliver a personalized experience to the user."

The research firm will host the 18th annual CONNECTIONS Summit: Performance and Profits: Smart Home Strategies at CES on January 9, 2024, at the Venetian, Level 4, Marcello 4404, from 9:00 AM- 5:00 PM in Las Vegas. 

CONNECTIONS Summit features six executive sessions and a fireside chat on "Smart Home Innovations" with Mark Benson, Head of Samsung SmartThings U.S., Samsung SmartThings. CONNECTIONS Summit concludes with a networking reception sponsored by Cox Communities.

DALLAS—One in five U.S. internet households owns a TV antenna, and 12% that don’t plan to buy one in the next six months, according to Park Associates’ new ”ATSC 3.0: Impact and Opportunity for Video Services” report.

"The percentage of antenna owners has remained steady over the last few years, creating a stable audience for broadcasters at a time when they are losing revenues from lost retransmission fees as consumers abandon pay TV for streaming services," said Alan Bullock, senior contributing analyst at Parks Associates. "ATSC 3.0 has the potential to pump new life into broadcast TV."

OTA reception offers a welcome refuge for many cord-cutters who have abandoned pay TV, which is demonstrated by usage. According to the report, TV antenna owners say they spend 6.4 hours a week watching OTA TV, approaching the 7.6 hours spent weekly consuming on-demand streaming video content.

Nearly 30% of antenna owners said they prefer OTA to watch live news, and about 20% prefer it to watch live sports, TV shows and movies, the report said.

The report points out that ATSC 3.0 could improve the viewing experience and attract new OTA views by enabling higher quality video, enhanced audio and interactive capabilities.

More information is available on the company’s website. 

DALLAS—As streaming companies worry about high levels of subscribers churning in and out of their services, Parks Associates has released new data showing that Netflix and Prime Video enjoy the longest subscriber lifetimes, with both services boasting an average duration per subscriber of more than four years each. 

Parks reported that during the past several years of its surveys both streaming services have consistently maintained the longest subscriber tenure. Building on that  stickiness, this year they actually improved their position, with their average subscription duration increased by three to four months from Q3 2022 to Q1 2023.

"Households are still experimenting with different services as they evolve over time to build their own service stack," said Eric Sorensen, director, streaming video tracker, Parks Associates. "Service consolidation has changed subscription dynamics, as Showtime has become part of Paramount+ and HBO is now Max, but even as consolidation occurs, it is having a limited effect on churn for these services. Premium service subscriptions average around two years, which suggests consumers are getting better value out of the consolidated content."

The Parks survey data ranked the subscription duration data for the top streaming companies as follows:

DALLAS—Parks Associates has released an updated list of the top 10 US subscription streaming video services. The new list, which is based on estimated numbers of subscribers through September 2023 from the firm's Streaming Video Tracker, shows Prime Video has maintained its #1 position, followed by Netflix as #2.

Notably changes in the rankings include Paramount+ moved ahead of ESPN+, and YouTube Premium pushed into the 10th position for the first time.

The research firm also reported that 89% of broadband households have at least one OTT service, 41% have used an AVOD service in the past 30 days, and 29% subscribe to eight or more OTT subscriptions.

"The market for subscription services is saturated, and consumers continue to experiment with ad-supported services as they evaluate their budgets," said Eric Sorensen, director of the streaming video tracker at Parks Associates. Sorensen confirmed a continued shift toward FAST and AVOD services, as well as the bundling of channels, services, and creative distribution partnerships.

The new top 10 is U.S. subscription services is: 

• Prime Video
• Netflix
• Hulu
• Disney+
• MAX
• Paramount+
• ESPN+
• Peacock
• Apple TV+
• YouTube Premium

"Streaming services are seeking a sustainable, profitable business model in the midst of incredible change," said Jennifer Kent, vice president of research, Parks Associates. "For the first time, all three tech giants with notable streaming services – Amazon, Google, and Apple – made the top 10 top SVOD list, emphasizing the power of the new platform players. We expect prices to continue to rise and more aggregation and bundling as media giants stake out their role in the future of entertainment."

DALLAS—Parks Associates has announced new research showing the average streaming household, which subscribes to 5.6 streaming services, could save $366 per year on average by switching from premium subscription tiers to ad-based tiers. 

The top services, including Netflix, Prime Video, Hulu, Disney+, Max, Paramount+, Peacock, and Discovery+, offer or plan to offer an ad-based option that is, on average, $5.44 cheaper than their basic, ad-free service, the researchers said. 

"The move to ad-based services provides more options for consumers, especially as they are seeking a balance between costs and the desire for multiple content options," said Jennifer Kent, vice president, research, Parks Associates. "Not everyone's favorite streaming service offers a cheaper ad-based service tier yet, and many subscribers will choose a mix of ad-based and premium options, depending on household preferences."

Parks did not release additional data from the study to the press. 

The data point described above was released as part of its promotion of the Parks’ annual Future of Video on November 14-16 at Marina del Rey, Calif. 

More information about the event is available at www.futureofvideo.us  .

DALLAS—As streaming companies jack up prices in the hopes of staunching large losses, consumers seem to be also watching their pennies by significantly reducing the amount they spend on streaming subscriptions, a trend that could have major implications for the financial health of the streaming industry. 

In the runup to a Sept. 19 webinar entitled "AVOD, FAST, Freemium: Effective Advertising in the New Video Landscape," Parks Associates is reporting that internet household spending on streaming subscription services has declined 25% to $73 per month versus $90 in 2021. 

Meanwhile, nearly one-third (31%) of households used free ad-based services by the end of 2022 -- posting the fourth consecutive year of market share growth since 2019.

The decline in subscription spending coupled with growing use of ad-supported services makes streaming ad strategies and infrastructures more important than ever, the researchers said. 

"Leveraging data to provide relevant content and digital advertisements to keep viewers engaged is crucial, and tricky. Data is fragmented across operating systems and applications, and viewer consent is required," said Jennifer Kent, vice president pesearch, Parks Associates. "The next generation of TV and CTV advertising should not replicate traditional linear, pay-TV ad formats and models but offer interactive, actionable, secure, and enjoyable experiences that engage video viewers and attract ad dollars."

During the Sept. 19 webinar Parks Associates and Adeia will present research and insights from the just-published white paper, Overcoming Complexity: Advertising in a Fragmented Landscape, and discuss how advertising is evolving to accommodate new ad-supported streaming models and privacy practices for a more engaging and targeted experience.

"Concerns around inflation and streaming services price hikes are driving consumers to dynamically choose the streaming services that they subscribe to each month. As a result, AVOD services have risen in popularity, adding to the fragmentation of target audiences for advertisers and brands," said Jean-Yves Couleaud, senior director of advanced R&D for Adeia. "Leveraging first-party data is helpful for advertising; however, this first-party data as well as ad reporting are still locked within each streaming service. We, as industry technologists, are looking for technological solutions that will federate advertising opportunities and reporting across the disparate streaming landscape."

DALLAS—In a recently released analysis and survey of the video services landscape, Parks Associates is providing some alarming numbers on how quickly consumers are switching and canceling streaming services. The research shows the average annualized subscriber churn rate for streaming video services now stands at 47%.

The top driver of service cancellations is the desire to save money – 29% of Internet households say they cancel a service to save money. Finishing a show is the next most popular reason.

Other popular reasons also included economic factors. The ending of a promotion price was the fourth most cited reason for canceling and price hikes were number five. 

"Consumer focus on price and content underscores the pivotal role of value in consumer decision-making," said Sarah Lee, research analyst, Parks Associates. "When high-quality content is absent, subscriber churn becomes inevitable, making content diversity a cornerstone of profitable growth, along with consideration of pricing."

Rapid changes in viewer behaviors, coupled with the ongoing Writers Guild of America (WGA) strike, emphasize the content conundrum in today's video services market, the researchers said.

The study also noted that a steady flow of scripted content is pivotal to viewer engagement, but it is costly and prone to disruption. Providers need to align content strategies with evolving viewer demands and greater emphasis on financial returns, which accounts for the recent rise of Free Ad-Supported TV (FAST) and Advertising-Based Video on Demand (AVOD) services. Disney recently announced increases for premium Disney+ and Hulu subscription services, while offering ad-supported service bundles at highly discounted levels.

"Video Services: Shifting Demand," research based on a survey of 10,000 US internet households, investigates the dynamics of traditional pay-TV, streaming TV, and OTT services, dissecting subscription, ad-based, and transactional business models and provides insights into retaining subscribers and boosting revenue 

Parks Associates will feature this research along with executive insight on industry trends the at the sixth annual Future of Video, hosted at the Marina del Rey Marriott in Marina del Rey, CA, on November 14-16, 2023. 

DALLAS—Market research firm Parks Associates is reporting that churn rates for streaming video remain remarkably high but haven’t gotten worse, with the churn rate for OTT video services holding steady at 47%.

Parks Associates also reported that only 37% of households subscribing to OTT services in the past year went directly through a service provider.

Coupled with the already high churn rates, that means streaming services face an increasingly complex landscape for attracting new subscribers, with large numbers of people subscribing outside the streaming service’s own platform. 

"There is so much to talk about - direct subscription has been losing ground to aggregation, and bundling is becoming more important," said Jennifer Kent, VP, Research, Parks Associates.

To address some of those issues, Parks has announced the topics for its sixth annual Future of Video, hosted at the Marina del Rey Marriott in Marina del Rey, CA, November 14-16, 2023. 

DALLAS—Anyone wondering how much password sharing and other forms of piracy are costing the U.S. streaming industry now has an answer from Parks Associates. The research firm is reporting that by the end of 2027, there will be a cumulative loss to piracy of $113 billion for streaming video providers serving U.S. consumers. 

While large streamers like Netflix are working to cut down password sharing, the international research firm's latest forecast also indicates that the problem is getting worse, not better. 

It predicts that piracy rates for U.S. streaming services in film and television programming are expected to rise from 22% in 2022 to 24.5% in 2027 and that the value of fraudulent advertising delivered online to media and entertainment consumers may exceed $700 million in 2027.

The Parks Associates research also shows that visits to pirate hosting websites increased by 31% in 2020 and industry leaders are responding with new anti-piracy policies in the hopes of stemming revenue losses.

The new study "Streaming Piracy Market & Ecosystem Strategies" provides a comprehensive view of piracy threats and the evolution of anti-piracy techniques along with five-year forecasts of revenue loss in the US market for video service providers. 

"While there is some optimism that emerging countermeasures and best-practices may see piracy begin to plateau by 2027, there is no consensus among stakeholders as to when it may begin to decline," said Steve Hawley, contributing analyst, Parks Associates, and managing director of the Piracy Monitor industry newsletter and consultancy. "This research provides a much-needed understanding of the issues at hand and the technologies and approaches available to fight piracy."

Parks Associates' research indicates that video service providers may reduce the motivation for password sharing by restricting the number of users who can stream the service simultaneously. In addition, Netflix is introducing a feature that will allow users to share accounts for an extra fee, and Adobe launched "Prime Account IQ" to help providers identify when viewers are sharing credentials.

"The number of households who share account credentials and consume pirated content is rising. People are increasingly looking for new ways to satisfy entertainment needs," said Sarah Lee, research analyst, Parks Associates, and contributor to the report. "Participation in sharing account credentials increased 48% since 2019."

New survey data from Parks Associates shows that subscription video services are nearly ubiquitous in U.S. homes, with 87% of US internet households having at least one OTT subscription service, and that password sharing is also widespread, with 40% of homes sharing login credentials. 

The data is for 2022 from Parks’ OTT Video Market Tracker online service, which followed 354 independent OTT services in the United States in 2022,

“Despite the dominance of subscription over-the-top (OTT) services, 44% of households continue to watch some form of pay TV, indicating that there is still interest in live/linear and ad-supported forms of content,” said Jennifer Kent, vice president of research at Parks Associates. “As consumers examine their finances out of fear of a recession, free streaming television continues to gain popularity. Savvy, ad-tolerant customers will view advertisements in return for cheaper solutions.”  

Other data points include: 

• 40% of US internet households share or use shared credentials, up from 27% in 2019.
• 63% of US internet households own a smart TV.
• Nearly half of OTT subscribers hop between services multiple times over a 12-month period.
• 48% of subscribers cited content or a specific program as the primary motivation to subscribe to a new service.  

DALLAS—Over the past seven years, U.S. households with broadband subscriptions have increased ownership of smart TVs from 38% to 63%, illustrating the trend towards TVs with integrated operating systems and away from peripherals. 

That’s according to the latest research from Parks Associates, which released its OTT Video Market Tracker at CES 2023 last week. The report highlights how companies like Roku and others have transformed the role of the TV in the home by marrying entertainment with connected home functions. Roku announced at CES 2023 it would manufacture its own line of smart TVs this year, and many companies showed off new TV technologies.

(Read also: Sharp Plans to Enter U.S. Smart TV Market With New Sets Based on Roku's New 'OLED Reference Design')

"Smart TVs are part of the modern home; this device will be a key element of an integrated whole-home entertainment vision going forward," said Elizabeth Parks, President, Parks Associates. "New applications and integration are bringing together the smart home and entertainment ecosystems to further monetize its user base and have more control of the data in the home."

Parks Associates research shows 87% of U.S. Internet households have at least one streaming service. At CES, many companies announced new smart TVs and seek to  leverage the operating system as much as the hardware for future applications. TV manufacturers and tech giants, such as Amazon, Apple, Google, and Samsung, are building smart home controls into the TV, transforming this device into a home control platform.

Parks notes that the trend will only accelerate. “Connected device owners now have an average of 16 connected devices in the home, and the desire for a single access control point is at the top of their wants,” the researcher said.

DALLAS—Annual sports OTT subscription revenue in the United States was $13.1 billion in 2022 and will almost double to approximately $22.6 billion in 2027, a 73% increase over the next five years. 

That was the conclusion of Park’s Associates “OTT & Sports: Services and Strategies for Growth,” report, which examines key trends in sports content and provides an overview of the pay-TV sports media landscape, OTT sports services, direct-to-consumer trends, and the sports fan viewing experience.

The report notes traditional pay TV is losing its stronghold on sports media rights. Streaming providers, in search of original and exclusive content, are looking to live sports to attract and maintain their user bases. For example, Amazon now has the NFL's Thursday Night Football on Prime Video, and Apple recently announced a 10-year deal with Major League Soccer (MLS). 

According to Parks, the $13.1 billion does not include any sports-specific services offered for free or included in the service such as Amazon Prime or Apple TV. "The 2022 subscription revenue number only includes those services that are dedicated OTT sports services or are sports add-on tiers/packages,“ said Eric Sorensen, Sr. Contributing Analyst for Parks Associates.

Sport media rights holders want to get games in front of as many eyes as possible, according to Jennifer Kent, VP, Research, Parks Associates.

"The audience reach of online-only and streaming services is enormous. To compete with the digital titans, media conglomerates with conventional and online services are shifting finances and resources to launch, improve, and develop streaming services targeted at sports fans."

The report notes that as sports fans move online and away from traditional pay TV, this drives yet another sector of the pay-TV demographic to cut the cord. According to the research, there are more than 50 specific sports OTT services in the US, creating market fragmentation and competition to attract sports fans.

"There has always been intense competition for sports-related content, but the disaggregation of content delivery with the growth of streaming services is pouring fuel on the fire," Kent said.

This article has been updated. 

DALLAS—A new Parks Associates whitepaper has found that consumers have limited loyalty to streaming services, with nearly half (48%) of OTT subscribers hopping between services, outside of Netflix, multiple times over a 12-month period. 

The “Optimizing Video, Enhancing Content Performance for OTT Success” whitepaper, released in partnership with SymphonyAI Media, examines the current state of the competitive streaming video market and the benefits of implementing data-driven solutions able to handle today's complex revenue models.

The study is the latest example of how fickle consumers are creating headaches for streamers looking to expand their sub base in an increasingly saturated and competitive streaming market. 

“Consumers are experimenting across new services, so content sellers and streaming services must ensure that relevant, engaging content is presented to subscribers,” said Thomas Schaeffer, senior contributing analyst, Parks Associates. “The lack of insight into content performance is a major hindrance to monetization, and the ability to get that insight has implications for an offering's bottom line.”  

“The rapid adoption of hybrid ad-supported and subscription revenue streams forces media organizations to reconcile complex data sources, formats, and requirements,” said Mark Moeder, CEO of SymphonyAI Media. “Deriving insight from this new data ecosystem gives content sellers and service providers clarity around the value of the content they seek to monetize.”  

The whitepaper also reports 48% of subscribers cited content or a specific program as the primary motivation to subscribe to a new service. 

That is making content performance data an increasingly valuable asset as media organizations try to continuously assess, demonstrate, and predict the value of a service’s catalog within the licensing ecosystem, the researchers said. 

“Considering the dynamic nature of the media and entertainment industry, content analytics solutions are essential for content sellers and streaming services to optimally monetize content in a complex revenue ecosystem,” said Jennifer Kent, vice president of research, Parks Associates.

This whitepaper is available for download here.  

DALLAS—Parks Associates is reporting that consumers have maintained recent increases in the amount of time they spend watching video on their mobile phones, while time spent consuming video on a TV set, tablet, and computer continues to decrease. 

Advertising-based online video (AVOD) accounts for the largest share at nearly two hours per week on average, but consumers also spent more than one hour each watching subscription video services (SVOD) and live streaming content on their mobile phones.

"The shift between platforms will push the industry to tailor services and content more aggressively to suit mobile phone viewers," said Elizabeth Parks, president and CMO, Parks Associates. "This changing dynamic will likewise increase the importance of AVOD offerings, already increasingly popular on mobile phones."

Parks released the data in the runup to its fifth annual Future of Video: OTT, Pay TV, and Digital Media event which will be held December 12-14 at the Marina del Rey Marriott. The event features industry leaders from Sony, Xperi, VIZIO, Amazon, Sinclair Broadcast Group, Disney Streaming, Crackle Plus, Samsung TV Plus, and more.  

DALLAS—New research from Parks Associates documents the effectiveness of ads in ad-supported streaming services with a survey that finds nearly one in four users (23%) of ad-supported OTT services said they often click on ads that they watch. The same percentage (23%) also reported that they “often” buy things they see advertised. 

The research report Ad-Based OTT: Growth in FAST and AVOD Services explores factors driving the growth of ad-based online video, profiles and compares market leaders, and assesses consumer preferences in watching ad-based content.

“Now, 37 million US internet households use at least one advertising-based OTT streaming service,” said Alan Bullock, senior contributing analyst, Parks Associates. “Hybrid models, especially when AVOD or FAST are included, enable quick customer acquisition and a ‘try before you buy’ experience with the content offering. Advertisers can reach many people, and consumers can get a lot of free content.”

Ad-based services are benefiting from the current uncertain economic climate. Inflation and fears of recession are causing consumers to evaluate discretionary spending, and switching from legacy pay-TV or subscription-based streaming services is a means of cutting costs, the researchers said. 

“As consumers continue to move away from traditional pay-TV services, they will first seek out ways to watch the content they want in ways they are accustomed to—a relaxed, lean-back experience,” Bullock said. “Even so, ad-supported streaming services should strive to be more than simply traditional TV on the internet. This is a time for thoughtful data-justified innovation, building a better experience than the living room TV of the past could ever offer.”

DALLAS—New data from Parks Associates’ OTT Video Market Tracker shows that more than two thirds of all internet households (68%) watch NFL games throughout the season, making football the most widely watched sport in the US. 

Parks’ researchers noted that the NFL is hoping to capitalize on that popularity with the NFL+ subscription (SVOD) service that offers access to live local and primetime games, NFL Network shows on-demand, and access to the NFL Films archives. But some fans have been frustrated with the viewing experience in the preseason, Parks reported. 

“The NFL+ service included out-of-market preseason games but viewable only on mobile devices," said Eric Sorensen, senior contributing analyst, Parks Associates. “Now, with the start of the NFL season, many fans are frustrated with local blackouts on the service. An NFL+ subscription does not guarantee access to every game, but Twitter reactions show the NFL must do a better job of informing fans of the extent and limitations of the product.”

The NFL has distribution deals with many big players, including Amazon, CBS, NBC Universal, and Disney. The fragmented state of NFL’s distribution rights creates major challenges in creating a comprehensive service for its product, Parks said. 

"The newly minted NFL+ app opens the possibility that all games could be streamed direct-to-consumer in the future, but the long-term nature of rights deals means an aggregated fan experience is unlikely in the near term,” said Tam Williams, marketing associate, Parks Associates.

The OTT Video Market Tracker, an annual service from Parks Associates, features monthly updates on trends and market activities in the OTT video space, including comprehensive tracking of existing and emerging players and quarterly subscriber estimates.  

DALLAS, Texas—Personalizing the viewing experience will be the theme of a Parks Associates virtual conference July 21 at 11 a.m. CDT, the research firm said today.

The “Personalization and the New Video Viewer,” themed day—part of the firm’s fifth annual Future of Video, OTT, Pay TV and Digital Media event—will include an analyst insight on consumers and video equipment from Parks Associates senior contributing analyst Eric Sorensen; a session on new live, social and interactive video experiences; and a session on how to use content to build viewer loyalty as well as a fireside chat between Robert Gelick, chief product officer at Paramount, and Parks president and CMO Elizabeth Parks.

The personalization theme is in line with findings from the firm’s research that show streaming opens the door to more immersive, engaging consumer experiences, such as co-viewing services. It also reveals that one-quarter of internet households say they would be very likely to try a co-viewing feature if offered by a favorite video service.

“More consumers watch streaming content while at home and watch it with others more often. Co-viewing is most popular in households with children, according to our most recent data,” said Sorensen. “Interactive elements, such as watching statistics or fantasy games on another device, are a typical occurrence among sports enthusiasts.”

Session panelists include: Jon Cohen, senior vice president of business development and distribution at Frequency; Rob Dillon, head of digital product at Straight Arrow News; Alexander Kann, chief executive of Together TV; Ed Laczynski, founder and CEO of Zype; Jim Long, CEO of Didja; DeShuna Spencer, founder and CEO of kweliTV; Paul Pastor, chief business officer and co-founder of Firstlight Media; and Mark Starker, senior vice president and head of direct-to-consumer services for business and corporate strategy at Endeavor Streaming.

The Future of Video conference is sponsored by Adeia, FPT Software, Symphony MediaAI, Comcast Technology Solutions and Metrological.

Registration is available online. 

DALLAS—New research reveals 40 million U.S. internet households trialed and subscribed to at least one over-the-top (OTT) service in the first half of 2021.

The research, “OTT: Perception, Use and Business Models,” from Parks Associates sought answers on how consumers use and perceive OTT services across different business models, what they thought about the content libraries of various services as well as their views on the features offered.

“Trials are an effective onboarding tool with 40 million households trialing and then subscribing to at least on service…,” said Eric Sorensen, senior contributing analyst at Parks Associates. “The more services consumers try, the more they are likely to subscribe to at least one. Consumers who frequently trial different services are highly engaged video consumers in general, so services need to cater to these users.”

About one out of two U.S. internet households have trialed at least on services, and 78% of those signed up for at least one. Although large OTT services like Disney+ and Netflix  have discontinued trial offers, smaller services continue theirs and have found them to be an effective tool for winning customers in the highly competitive OTT market, Parks Associates said.

“Low cost barriers drive consumers to sign up for free trials, but the content will keep them,” said Sorensen. “All content creation efforts are focused on acquiring new customers and retaining those who are already subscribed by providing compelling content.” 

More information is available on the research firm’s website.

ADDISON, Texas—U.S. over-the-top video fans apparently can’t get enough of streaming television with half of the 10,000 internet households queried by Parks Associates recently reporting they stacked at least four OTT services in Q1 ’22.

According to the Parks’ quarterly tracking service, OTT Video Marker Tracker, this level of service-stacking represents an all-time high in the United States. 

“Service-stacking in the U.S. continues, but there will be a saturation point where households will no longer be willing to add another service and may look to trim back on their number of subscriptions,” said Eric Sorensen, senior contributing analyst at the research firm.

“Service providers are anticipating this and looking to expand worldwide with content and coverage to boost their global offerings," he continued. "This global push led to a bidding war for the exclusive streaming rights to the Indian Premier League cricket event, where Mumbai-based Viacom 18 beat out Disney. All providers are looking for new avenues to expand their global appeal.” 

Video service bundles are among the topics Parks Associates will address during its Future of Video: OTT, Pay TV and Digital Media conference, Dec. 12-14, at the Marina del Rey Marriott in Marina del Rey, Calif.

More information about the conference and the conference agenda is available online.