Global market penetration of OTT services has hit 38 per cent, according to new research by Grabyo.
The report surveyed 9,690 consumers across the UK, US, France, Italy, Spain, Germany and Australia, and found that OTT platforms are a more popular choice for video viewing than pay-TV services in every territory.
Further findings included:
- Netflix has hit 54 per cent global market penetration and is now as popular as traditional pay-TV services
- Amazon Prime Video has 30 per cent global market penetration and is the second most popular OTT service in many territories
- Localised OTT services such as BBC iPlayer, Canalplay, 10 Play and FuboTV are becoming increasingly popular with an average 22 per cent uptake
- 65 per cent of “cord-cutters” pay for an OTT service
- The majority of cord-cutters are younger consumers
- For 18-25-year-olds, consumption on OTT is second only to video viewing on social media platforms
Grabyo CEO Gareth Capon said: “OTT services are moving into the mainstream and are set to become the primary destination for video viewing in most markets. Traditional broadcasters need to evolve TV services to reflect the viewing preferences of modern consumers. Organisations such as the BBC are successfully transitioning the TV offering to raise the profile and primacy of streaming and OTT services, but more is needed to enable consumers to watch when they want, whenever they want to.
“The traditional TV schedule is becoming less and less relevant for many demographic groups and with the upcoming launch of major new OTT services from Disney, HBO and Apple this year, the pressure on the traditional TV model will increase. OTT enables choice, flexibility and better value for consumers, we should expect the growth of these services to continue to accelerate.”