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OTT subscribers are heading back to the living room

Number of hours viewers watch video on a TV has risen for the first time since 2014

New research from Parks Associates has found over half of US viewers with broadband are watching content via a connected TV.

“While the total number of hours consuming videos has declined, consumers are watching more internet video on the largest screen available,” according to Parks Associates Research analyst Billy Nayden. “The number of hours consumers report watching video on a TV increased for the first time since 2014, with connected devices enabling internet video services on TV and shifting consumers away from PC and mobile viewing.”

OTT services are now facing a “battle for the living room,” which is spurring device makers and content producers to find “the correct product mix to maximise both profit and utility,” said Nayden.

OTT business models based on subscriptions currently dominate the field, according to Parks Associates’ new “360 View: Digital Media and Connected Consumers” report. However, with the arrival of each new service, the potential for a subscription overload to develop grows.

“As consumers’ taste for OTT experimentation wanes, they will start to resist the push to add another monthly subscription to their households,” said Nayden. “Many providers are starting to lead with freemium and ad-based models, in anticipation of this pushback.”