Over-the-Top Providers May Be Missing Key Revenues

Over-the-top TV platforms may be growing, but OTT providers may not be getting an apportioned amount of revenues from users. A third-quarter 2014 survey says 11 percent of all US broadband home relying exclusively on shared OTT accounts when using subscription OTT services, according to Parks Associates. The finding says that 8 percent are using a OTT video account held by someone outside of their home; and 6 percent are exclusively using a shared OTT account. Parks says 57 percent of US broadband households access to some OTT.

Looking at some key OTT areas, Parks says 11 percent of Netflix users, 10 percent of Hulu Plus and 5 percent of Amazon Prime Instant Video are using an account paid for by someone else. Younger TV homes are the highest in terms of using shared OTT accounts -- 22 percent of 18-24 viewers who use an OTT service use a subscription that was paid for by someone outside of their homes. Parks says this OTT account-sharing research includes OTT services that are independent of pay-TV services. Brett Sappington, director of research, Parks Associates, stated: “OTT video accounts for a disproportionate amount of content consumed when compared to expenditure -- over one-third of video consumed per week is OTT, but it is only 9 percent of the household video budget.”