The average US household-spend on subscription over-the-top video services has held steady for the past three years, according to Parks Associates.
The research firm claims that OTT spend has averaged just under US$8 per-month since 2016, a figure that is higher than consumers’ monthly spend on cinema tickets, DVDs or Blu-rays.
Parks says the steady figure indicates that the adoption of multiple services or expensive services by some consumers is offset by a larger base of consumers who either subscribe to one or two relatively inexpensive services, including 30% of people who subscribe to no OTT services at all.
“The stability in average household spend belies the activity going on under the surface. 2019 may be poised to break that trend,” said Brett Sappington, senior director of research, Parks Associates.
“Netflix, Hulu, and Amazon continue to pack on new subscribers. At the same time, services like ESPN+ are also experiencing phenomenal growth, and new offerings from Disney and WarnerMedia are set for release later this summer.
“One of three things will happen – more households will become OTT streaming households, rival services will begin to pull subscribers away from Netflix, or that spending number will go up.”