OTT: Perception, Use, and Business Models highlights viewer preferences for OTT business models and conversion rates for OTT trials
DALLAS, July 14, 2022 /PRNewswire/ — International research firm Parks Associates’ new consumer study OTT: Perception, Use, and Business Models reveals 40 million US internet households trialed and subscribed to at least one OTT service in the first half of 2021. The research analyzes consumer use and perception across multiple business models, their libraries, and features.
Free trials offer consumers the opportunity to experiment with different streaming services. Nearly 50% of US internet households trialed at least one service in past six months, and 78% of those households ended up subscribing to at least one of these services. While major services such as Netflix and Disney+ have dispensed with free trials, smaller services find that trials turn into subscribers and help them stay competitive in this crowded market.
"Trials are an effective onboarding tool, with 40 million households trialing and then subscribing to at least one service in the past six months," said Eric Sorensen, Sr. Contributing Analyst, Parks Associates. "The more services consumers try, the more they are likely to subscribe to at least one. Consumers who frequently trial different services are highly engaged video consumers in general, so services need to cater to these users."
For consumers, content ultimately drives their decision to stay with a subscription. The large providers are planning significant content development expenditures in 2022 and beyond. For example, Netflix is set to spend more than $17 billion on content, while Disney+ has committed to spending $33 billion on programming and content.
"Low cost barriers drive consumers to sign up for free trials, but the content will keep them," Sorensen said. "All content creation efforts are focused on acquiring new customers and retaining those who are already subscribed by providing compelling content."
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Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.
The company’s expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.
Each year, Parks Associates hosts industry webinars, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com
SOURCE Parks Associates