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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.
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