Report Says 37 Percent of US Homes with High Speed Internet Use Transactional OTT Content

The rise of over-the-top (OTT) content has been well-documented, and today, services like Netflix, Hulu Plus and Crackle have become household names. And now there’s even more evidence of the technology’s popularity.

According to a new study from Parks Associates, 37 percent of U.S. households that have broadband connections regularly use transactional OTT services, like Amazon Instant Video. In fact, as many as two out of three Amazon Prime Instant Video subscribers also rent or buy titles through the service, and the research indicates these customers will be spending more money in the future.

“Subscription services are the most popular form of OTT video, but a transaction service that offers a wide selection of titles and easy-to-use controls can score with consumers and create new revenues,” explains Barbara Kraus, the director of research at Parks Associates.

Kraus said that in order for businesses to take advantage of this extra revenue source, they have to have a diverse array of fresh content. Verizon and Redbox recently shuttered the Redbox Instant service because it didn’t offer that many new streaming options, she said.

The study indicates that among people who regularly stream content, 80 percent of them pay for a monthly OTT service, using a device like Apple TV or Roku. In addition to that, 30 percent stream video rentals and 20 percent purchase titles to stream. In other words, people are no longer content with having one OTT service.

We expect that customers will continue to migrate toward OTT content for their entertainment needs, particularly as Internet connections become even faster and more reliable and more homes hop on the broadband wagon.  As a result, content providers and cable companies will have the ability to generate more revenue than before.