Reflecting the surge in consumer adoption and volume of subscription VOD services, almost half of U.S. broadband customers pay for at least one OTT video service, according to a survey from IBB Consulting.
The study, based on a survey of 2,007 U.S. online consumers, found that about one-third subscribe to two OTT services and 18% take three or more.
Millennials are the group most likely to take more than three paid OTT services. Notably, some 63% of paid OTT subscribers also get a traditional pay TV service.
About 61% of those surveyed said they’d pay at least an additional $2 per month for their favorite SVOD service, if the price were to rise.
IBB said more than half of respondents that plan to subscribe to premium, niche or sports SVOD services are willing to pay between $5 to $15 per month.
More than half (53%) said they plan to spend on a general service such as Netflix or Hulu, compared to 23% that were looking to add a premium network subscription like HBO or Showtime, and 24% were eying either a sports, broadcast network or niche content service.
Nearly half (47%) of consumers who pay for an OTT service said they’d be willing to pay a premium for live content, such as news or sports, with 19% saying they’d pay at least $4 for that live feature, and 29% would spend between $1 and $3.
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Perhaps surprisingly, having access to live video is of key to millennials. About 52% in the 18-29 age range would be willing to spend on live content, versus 49% in the 30-44 age group, 46% among those who are 45 to 59 years old, and 36% among 60 year-olds.
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Among other findings, IBB said nearly one-quarter of SVOD users rely on social media for recommendations.
"With this in mind, OTT providers must also consider efforts beyond in-app discovery improvements to intelligently target influencers that can help spread the word about new programs that users might enjoy,” the company said.
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