A study by Parks Associates found that the COVID-19 pandemic has boosted OTT video subscriptions among households with broadband in the U.S. — over three quarters now subscribe to a service, an increase of roughly 6 million households since Q1 2019. To drive new subscribers, OTT providers have accelerated new material releases and implemented more robust free trial terms. The industry is exploring new service models to accommodate tighter household budgets and the recent increases in competition.
“The entertainment industry, like all industries, faces an unprecedented situation as a result of the ongoing COVID-19 pandemic,” said Steve Nason, Research Director, Parks Associates. “With movie theaters closed and cinematic productions and live events canceled or postponed, services are lacking some high-dollar content at the same time overall video consumption is accelerating. OTT services responded by adding new releases and extended free trials.”