The video services space, including pay TV and OTT, continues to evolve to meet ever-changing market conditions and consumer behaviors.
The traditional pay-TV market continues to face significant challenges including ongoing subscriber erosion and competition from vMVPDs. The market has had to pivot to vertical integration and bundling, aggregation, and online video solutions to sustain and grow.
The OTT video services market continues to evolve, with high-profile offerings from large media organizations and smaller-scale offerings from a variety of more niche players. Services continue to augment their user experiences and distribution channels with many employing a hybrid business model approach to better reach and monetize their offerings.
This State of the Market industry report examines the top trends in the US and Canadian video service markets and the forces that will affect the market over the next year. The report includes a five-year forecast of pay-TV and OTT subscriptions in the North American market.
Bottom Line
Evolution of Entertainment Media Consumption
COVID Impact on Video Consumption
Cord Cutting Continues, Impacting Revenues
The Streaming Service Stack Has Not Yet Hit its Ceiling
Without Contracts, Service Hoppers Contribute to Churn
Content and Discovery Challenges Impact the User Experience
Bundles and Aggregation Platforms Aid in Service Discovery
Assessing the Video Service Market: Strategies by Service Segment
Defining the Video Service Market
Traditional Pay-TV Providers Move Online
vMVPDs Grow Despite High Operating Costs
Subscription Video-On-Demand (SVOD): Services Raise Prices
Transactional Video on Demand (TVOD) Benefits from Shelter at Home
Advertising-based Video-on-Demand Services (AVOD) and (FAST) on the Rise
Trends Shaping the Streaming Services Market
Smart TVs are on Fire
Shifts in Windowing Grow TVOD Services
Consolidation Driving Competition
Content Creators are Going Direct to Consumer (DTC)
Standard Measurements in Development
Hybrid Business Models are a Competitive Advantage
Profiles of OTT Services with Hybrid Business Models
ViacomCBS – As of February 2022 -“Paramount”
Discovery+
Redbox
AppleTV+
Peacock
Market Forecast: US OTT Service Subscriptions and Revenue
Forecast Methodology and Assumptions
Forecast US OTT Service Subscriptions
Revenue Forecast
Implications and Recommendations
Glossary of Terms
Appendix
Companies Research or Interviewed for Report
List of Figures
Attribution
Penetration of Traditional vs. OTT Video Services
Evolution of Entertainment Media Consumption
Pay-TV Adoption in North America Forecast: 2020-2024
Traditional Pay-TV Subscriptions, Cord-Cutters vs. Cord-Nevers
Average Monthly Spending on OTT Services
Number of OTT Service Subscriptions
OTT Subscriber Churn
Number of OTT Services Cancelled: Non-Hoppers vs. Hoppers
OTT Service Use by Business Model
Top Factors Influencing OTT Service Subscription
Method of Subscribing to OTT Services
Entertainment Video Service Ecosystem
Pay TV Adoption by Service Type
vMVPD Service Adoption, 2017-2021
Leading vMVPD Service Providers
Subscriber Churn: vMVPDs vs All OTT Services
Top SVOD Services - US Subscribers, Year-End 2021
Transactional OTT Service Use
Windowing: Viewers' Preferred Method of Watching New Movies
Ad-based OTT Video Service Usage
Use of Ad-based OTT Video Services
OTT Ad-based Service Use, with other OTT Models
Ad-Based Services Owned and Operated by SVOD Services
Viewers Ad-based OTT Preferences: AVOD vs FAST
Attitudes Towards Advertising among Ad-based OTT Viewers
Adoption of Streaming Video Devices
Neilsen's The Gauge Viewership Metrics
OTT Service Leaders: Business Model Comparison
OTT Services with Hybrid Business Models: Comparison on Key Metrics
Evolution to Paramount+
Paramount+ US Subscriber Estimates
Discovery+ and HBO Max US Subscriber Estimates
Redbox: Ad-based vs. Transactional Use
Apple TV+ US Subscriber Estimates
Peacock US Subscriber Estimates
OTT Subscription Forecast
Subscription Revenue Forecast
© April 2022 Parks Associates
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Printed in the United States of America.
Disclaimer
Parks Associates has made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.
