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Netflix Leads US OTT Video Market But...

Aditya Kishore
4/14/2017
50%
50%

Guess what? More households are streaming Netflix than any other OTT video service in the US, according to the latest data from comScore Inc.

Of course, this news is not terribly surprising, given Netflx's popularity. But the comScore Inc. study, which was conducted in December 2016, does provide some interesting statistics about consumer adoption and usage of OTT video in general.

Specifically, the study found that more than 49 million American homes (53% of all US WiFi-connected homes) are now using at least one OTT video service. These households use the service an average of 19 days per month, for an average of 2.2 hours on each of those days. Viewing reaches its peak during the traditional prime-time TV viewing hours.

Netflix Inc. (Nasdaq: NFLX) is the dominant provider, reaching 75% of OTT homes. YouTube Inc. , though, is a healthy second, reaching 53% of OTT homes. Amazon.com Inc. (Nasdaq: AMZN)'s Amazon Video service ranked third with 33%, and Hulu LLC came in fourth at 17%. There are now 11 OTT services in the US with 1 million or more homes using them every month, according to comScore. (See Amazon, Netflix Forging Ahead With Original Content and We'll Make Buffering Obsolete, Like Dial-Up: Netflix CEO.)

Netflix's domination of the space also faces challenges in the area of engagement. While Netflix's users spend a perfectly respectable 28 hours on viewing per month, that is eclipsed by Sling TV , Dish Network LLC (Nasdaq: DISH)'s skinny bundle. Sling users watch 47 hours of the service per month -- or 70% more than Netflix -- underscoring the significance of volume over value where content is concerned.

For more on this story, please turn to our sister site, Telco Transformation.

— Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation

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