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  1. OTT Churn Rate Holds Steady at 19%

    According to Parks Associates, 19% of U.S. broadband households cancelled an OTT video service in the past 12 months. The research house says the overall churn rate for OTT services has been stable for the past year, with top services Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN), and Hulu all reducing their churn rates. At the end of 2015, 20% of U.S. broadband households had cancelled at least one OTT video service in the past 12 months. "The churn rate has held steady, with one in five broadband households canceling an OTT video service in the past year," said Brett Sappington, Parks' senior director of research. "These are not free trials but instances where consumers are spending real money to try out new OTT services. One-third of households that currently subscribe to an OTT video service have cancelled one or more services in the past year, which shows that there is quite a bit of experimentation occurring right now." Parks says households with OTT video subscriptions increased their spending from an average of $3.71 per month in 2012 to $7.95 in 2016. At the same time, spending on physical media purchases and rentals declined from an average of $15 per month to $8 per month, and spending on digital transactional video declined from an average of $2.42 per month to $1.42 per month. "On average, spending on subscription OTT video services now accounts for 85% of all household spending on Internet video," said Glenn Hower, Parks' senior analyst. "The key to success in the long term will be retention. Consumers are experimenting with different OTT services, and many providers incorporate no-contract, cancel-any time models to remove barriers to entry and to entice consumers to try new services free of obligations." Parks says churn is lowest among the top three most established services (Netflix, Amazon and Hulu), and these providers are in a race to add new content and services or to match each other in new features to prevent any migration of their subscribers to a competitor. For example, Hulu recently announced it would offer its users the ability to download videos to watch offline, such as during a flight. Amazon began the trend for downloadable content in July 2016, and Netflix followed suit in November. "These services have worked to establish core customer bases, and the inertia of these core groups provides an important baseline of ongoing revenues," Sappington said. "They continue to refine or add to their offerings so that subscribers will continue to see new value in the service, providing ongoing reasons to remain a subscriber."

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    Thu, 2 Feb 2017

  2. CES Video Trends: Wheat vs. Chaff

    As the 2017 International CES wraps up in Las Vegas, it's time to sort the wheat from the chaff. Amongst the Internet-connected scarves and WiFi hair brushes (I am not making this up), a number of interesting ...

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    Fri, 6 Jan 2017

  3. Parks' Top 10 Consumer IoT Trends for 2017

    Parks Associates has listed its top 10 Internet of Things (IoT) trends impacting the markets for consumer technology now and into 2017. The ...

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    Thu, 15 Dec 2016

  4. Comcast Adding Sling TV to X1

    Comcast (NASDAQ:CMCSA) announced plans to offer DISH's Sling TV over-the-top ( OTT ) video service on the X1 platform. The Internet-based ...

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    Wed, 23 Nov 2016

  1. Parks Lists Top 10 U.S. OTT Services

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    Wed, 26 Oct 2016

  2. Estonian Op Goes OTT with SeaChange

    Estonian cable operator Starman has introduced OTT video service based on the recent upgrade of its SeaChange International ...

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    Wed, 14 Sep 2016

  3. Device Apps Driving OTT Subscriptions

    According to Parks Associates, connected device apps for the monetization of video services are now the second most used method for ...

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    Wed, 31 Aug 2016

  4. shomi Taps Elemental for OTT, VOD

    shomi, a Canadian subscription VOD (SVOD) service run by Rogers Communications (TSX:RCI.A) and Shaw Communications (TSX:SJR.B), is ...

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    Mon, 1 Aug 2016

  5. OTT Upsurge, Flood of Streaming

    By Monta Monaco Hernon - Looking at the research that has come out over the last couple of months, it seems that OTT and streaming video ...

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    Mon, 1 Aug 2016

  6. OTT Business Models Shifting

    According to Parks Associates, OTT video business models are in a state of flux, with subscription-only models tending to dominate. The ...

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    Tue, 19 Jul 2016

  7. A Heaping Helping of Streamed Sports

    By Ron Hendrickson - Not everyone likes watching sports, but those who do really do. And nowhere is that appetite more apparent than in the world of streaming video.

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    Mon, 18 Jul 2016

  8. Pay TV Strong in U.S. Spanish-Language Homes

    According to Parks Associates, bilingual Spanish-language broadband households in the United States are more likely to have pay TV and OTT ...

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    Wed, 6 Jul 2016

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