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Parks: Account Sharing A Problem For OTT Video Services

Dallas – A total of 57 percent of broadband households access OTT video-subscriptions services, but the numbers are as high as they are in part because 11 percent of all households rely exclusively on accounts shared with someone outside of their household, Parks Associates found.

“Account sharing is a lingering challenge’” for OTT services, the research company said.

“OTT video accounts for a disproportionate amount of content consumed when compared to expenditure,” said research director Brett Sappington. “Over one-third of video consumed per week is OTT, but it is only 9 percent of the household video budget,” he said.

“Account sharing is part of the larger problem in monetizing the strong consumer demand for OTT content,” he said.

The research, conducted in the third quarter of 2014, found that 11 percent of Netflix subscribers, 10 percent of Hulu Plus subscribers, and 5 percent of Amazon Prime Instant Video subscribers uses an account paid for by someone else.

Account sharing is highest among younger households headed by 18- to 24-year-olds, with 22 percent of those households using an OTT service paid by someone outside of the household.

“In terms of hours of consumption per dollar spent, consumers have every reason to shift spending to online video,” Sappington said. “While the all-you-can-eat subscription model is very popular, several OTT services are experimenting with models that blend advertising, subscription, and transactional options.”

The issue will be a topic at the company’s Connections conference on May 19-21 in San Francisco. The three-day event will include panel discussions examining trends in video spending and consumption by source.