As the alternatives to pay-TV increase, so does the amount of cord-cutters and cord-nevers. According to recent studies, 70% of US households with OTT capabilities also have a cable subscription. But that tide is slowly shifting.
According to a new report from the Video Advertising Bureau, which looks at OTT usage, the number of households using only over-the-top streaming services has tripled since 2013, rising to 14.1 million homes (11% of U.S. TV households). While this number is less than the 12 percent of U.S. households that receive broadcast programming signals via antennae, it is expected to multiply in unison with the growing popularity of OTT, with cord-nevers playing a large role in its growth.
When it comes to viewing habits, it’s no surprise that between Netflix and Hulu, the former is viewed more days each month than the latter –12.3 days vs 9.9 days– however, viewers are spending more time on average with Hulu (2.9 hours per household per viewing day) than Netflix (2.2 hours). But Netflix still accounts for the majority (40%) of total viewing, followed by YouTube (18%), Hulu (14%) and Amazon (7%). Other OTT offerings account for the remaining 21% of viewing.
Additionally, the report suggests that advertising will continue to be an essential component of the OTT ecosystem. According to the findings, 65% of consumers who use a second screen while streaming content have looked up information about a product they’ve seen advertised. Currently advertising comprises of 45% of online video revenue. This number is projected to grow to almost 60% of online video revenue over the next decade.