Households using only OTT services have surged
According to the latest report by the Video Advertising Bureau, the number of American households using only OTT (over-the-top) streaming services has nearly tripled since 2013. According to the report, there are currently 14.1 million American households that currently use only OTT streaming services and not traditional pay TV. That represents 11% of all US TV households.
The report also pointed out that many households are supplementing their traditional pay-TV subscriptions with OTT subscriptions.
Could OTT services grow even more?
The strong growth in only OTT subscriptions points to a trend to end pay-TV subscriptions, which is likely to continue in the future. According to the report, 193.3 million US consumers are accessing an OTT streaming service at least once a month.
According to estimates of the Video Advertising Bureau, this number will grow to 209.5 million US consumers by 2021. However, the report also said that streaming accounted for only 11% of TV viewing hours for Americans between 18 and 49 years old in October 2017.
However, that also suggests that there is still a lot of scope for OTT services to grow. If the recent trends are anything to go by, the figures mentioned above are only likely to rise. As we mentioned in the previous part of this series, TV ad spending is beginning to decline due to the popularity of streaming services such as Netflix (NFLX).