Broadband Communities

Show Guide 2018

BROADBAND COMMUNITIES is the leading source of information on digital and broadband technologies for buildings and communities. Our editorial aims to accelerate the deployment of Fiber-To-The-Home and Fiber-To-The-Premises.

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Page 105 of 111

104 BROADBAND COMMUNITIES SUMMIT 2018 Show Guide Sponsor WHITE PAPER STATE OF THE MARKET OTT video is reshaping the U.S. entertainment marketplace – more than two-thirds of U.S. broadband households have an OTT service, and 38 percent of U.S. broadband households have more than one subscription. OTT users watch OTT services on their TV screens at an average of 4.2 hours per week, at least 50 percent more than on other platforms, such as PCs, smartphones or tablets, indicating consumer desire for a premium OTT viewing experience. Video and broadband services feed each other. Video consumption drives broadband demand, and faster broadband allows users to explore new ways to experience high-quality video – creating a virtuous cycle for many market participants and driving demand for very high-speed broadband, mobile data services and online pay-TV services. The related market risks – households cancel their pay-TV services and go online only – have developed more slowly. The penetration of OTT-only households has shown a gradual increase since mid-2015: • 17 percent of U.S. broadband households rely on OTT video services exclusively for subscription-based video entertainment. • 52 percent of U.S. broadband households have subscriptions to both pay TV and one or more OTT video services. OT T PARTNERSHIPS AND COMPETITION Pay TV and OTT video are becoming more closely integrated as partnerships within the video space become more common. With many unique video options available to consumers, online video service providers are realizing that success in the market will require partnerships to spread awareness of their products. The effectiveness of Amazon Channels as a distribution channel was MARKET SNAPSHOT OTT and Pay TV: The Next Generation of Video Services By Brett Sappington, Senior Director of Research, Parks Associates, and Hunter Sappington, Research Analyst, Parks Associates Average Video Consumption on TV Sets by Sources by Age U.S. Broadband Households © Parks Associates 20 10 0 Live TV/TV Contents DVDs/Blu-ray Discs Internet 18-24 25-34 35-44 Average # of Hours Per Week 45-54 55-64 65+ Among All Broadband Households

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