Hybrid OTT Future Has Few Models: Parks
Advertising-supported and transactional VOD models are growing as a way for over-the-top video providers to differentiate in an “incredibly crowded” streaming market, said Parks Associates analyst Jennifer Kent, opening the company’s online event Tuesday. Kent referenced “hundreds” of streaming video…
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services in the U.S., with all types of business models benefiting from a “massive increase” in OTT adoption spawned by stay-at-home COVID-19 trends. SVOD leads by far, but AVOD and TVOD services have increased users; 44% of OTT customers say they used AVOD in the past 30 days, up from 28% in 2018. One in five report using TVOD, double 2018. Hybrid models using subscription, ad-based and transactional models are emerging as a way to add users and content libraries while monetizing the business, Kent noted. SVOD and pay TV remain the first service type consumers turn to when looking for content, with ad-based offerings supplementing that, she said. That could change as ad-supported services expand their interfaces to resemble a content hub, she said, citing The Roku Channel and Samsung TV Plus.