Device Apps Driving OTT Subscriptions

According to Parks Associates, connected device apps for the monetization of video services are now the second most used method for consumers subscribing to OTT services. The research house says more than 25% of OTT video service subscriptions were purchased through a connected device app, including apps on streaming media players, game consoles, and connected TVs. Apps on connected devices trail only service provider websites in securing OTT subscribers.

"This finding reveals the increasing importance of connected devices as a channel for revenue generation. OTT video services continue to lead pay TV providers, broadcasters, and cable networks in use of connected apps to deliver content to the television," said Brett Sappington, Parks' senior director of research. "Lacking a presence on a connected device is essentially ceding the market to others. As competition for video services becomes more intense, companies are adding support and enhancing their apps for connected devices."

The biggest beneficiary of connected app usage among OTT providers has been Hulu, with 37% of its subscribers signing up for their subscription through a connected device. OTT leader Netflix (NASDAQ:NFLX) has seen 28% of its subscribers come on board using this method.