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1 Streaming Devices Rise as More Homes Consume OTT Content © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Streaming Devices Rise as More Homes Consume OTT Content

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Recent research shows that more than half of American homes have at least one device capable of streaming OTT (over-the-top) content. The research signifies there will be more demand for streaming on demand. A robust subscription billing platform would be required to monetize best the service. For subscription billing solutions, visit: https://www.vindicia.com/solutions/subscription-billing/

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Streaming Devices Rise as More Homes Consume OTT Content

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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Streaming Devices Rise as More Homes Consume OTT Content

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

According to Variety, more than half of American homes have at least one device capable

of streaming over-the-top content. The website recently announced research from

The NPD Group's latest Connected Home Entertainment Report. The quarterly statement

shares statistics regarding consumer devices that stream OTT content. It includes

information on TVs, tablets, smartphones, computers, video game consoles and more.

According to the data, 52 percent of all U.S. homes with Internet access have equipment

that streams video to directly their televisions. In fact, most households don't stop at just

one – the average family has about three video streaming devices.

The research broke down the machines into four categories: Blu-ray players, smart TVs,

video game consoles and streaming devices such as Apple TV and Roku. While game

consoles were the most widely used, streaming players grew at a faster rate. This is

likely due to the fact that Amazon, Google and Roku released new boxes and adapters

during the past holiday season.

Overall, the number of homes with streaming devices is up by 6 million over numbers

seen in the previous quarter.

3 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Every other home is capable of streaming online videos directly to a TV.

4 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Switching from traditional cable

Boston University noted many consumers have started to question their traditional cable

subscriptions. The average cable service costs $99 per month, and that price is

increasing. What's more, consumers generally watch only 17 of the 200 available

channels provided by cable.

"Everyone keeps talking about how TV viewership numbers are going down, but these

new connections and relationships and technologies are allowing people to watch more,"

Amy Young of CBS Networks told the school. "Average viewership jumps 88 percent

when you look at the full 35-day multiplatform window versus live and same-day

viewership.“

Instead of paying high prices for cable, consumers are flocking to streaming content

provided on a subscription billing model. They're choosier about the programming they

watch and would rather spend less money for specific titles as opposed to a lot of money

for television they don't enjoy. The numerous OTT content providers and devices only

makes the transition for cable easier. As The NPD Group mentioned, such devices are

one of the fastest-growing methods of watching videos online. A study by Strategy

Analytics found the most popular brands within that category are the Apple TV and

Google Chromecast, Multichannel.com reported.

5 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Strategy Analytics's study found Chromecast ended the year stronger than Apple TV,

despite having lower sales overall. The Google product made up 35 percent of the 42

million streaming units shipped in 2015. Apple TV came in second place, followed by

Roku and Amazon Fire. Ultimately, however, Apple leads the pack with 37 million devices

shipped since 2007. Chromecast sold 27 million during the same time period, and it is

quickly catching up.

With each passing year, OTT content providers gain traction as more consumers see the

benefits of switching from traditional television services. Viewers get to pick and choose

the shows they'd like to see rather than be subject to the schedule and programs of a

major cable network.

6 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

About the Author: Bryta Schulz

Bryta joined Vindicia in 2013 and serves as Senior Vice

President of Marketing. She is responsible for building brand

awareness, creating go-to-market strategy and promotion, and

driving growth. With over a decade of executive level marketing,

product management and PR experience, Bryta has led

marketing teams in enterprise technology and SaaS companies.

Her experience includes heading product marketing at GoGrid,

PGP, RSA and Symantec and business development and

product management positions at Xcert, Thales, and

Persistence Software. Bryta holds a MA in Translation from the

Johannes Gutenberg University Mainz and an MBA from the

University of Reutlingen.

Visit our Blog for more information.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.