According to Parks Associates, by the end of 2017, U.S. broadband households were spending nearly three hours per week watching video on a mobile phone, an increase of nearly 55% from 2015. This shift comes as households are watching less live broadcast video on their TV sets, which dropped from more than 60% of video consumption in early 2012 to 44% at the end of 2017.
"In the video services market, change has come quickly, affecting all aspects of the ecosystem," said Brett Sappington, Parks' senior director of research. "Beyond the increased consumption to on-demand viewing, consumer expectations for service features and experience continue to evolve. The journey consumers take in service selection and purchasing is also changing. At the same time, consolidation and the rise of new services produce a challenging competitive environment."
The result of these changes is a new approach to video services to address the new market dynamic in video services that encompasses all parts of the organization, from marketing through service delivery. The rise of direct-to-consumer services from content producers, new monetization models, and online pay TV services are indicative of the change.
"The good news: new opportunities produced by market change ultimately benefit all parts of the ecosystem," Sappington said. "Importantly, the consumer is the ultimate winner, enjoying new services, enhanced features, greater personalization, and a superior user experience."
Other findings indicate:
- More than 200 OTT services are available in the U.S. market.
- Each European market averages 80-100 OTT video competitors, in addition to offerings from traditional pay TV providers or mobile carriers.