It’s no surprise that consumers are gravitating to OTT video services in increasing numbers, but a new study from Parks Associates sheds some light on the recent rate of adoption.
In its new OTT Video Market Tracker, which analyzes and profiles nearly OTT services in the U.S. and Canada, the research firm found that adoption of OTT video subscriptions have climbed 12% since Q3 2014, a rise that comes despite the growth of password sharing, which has risen 8% over that same period.
“We have seen a steady climb thus far in 2016,” Brett Sappington, senior director of research at Parks Associates, said in a statement. “With Hulu’s shift to a subscription-only approach, OTT video subscription penetration in the U.S. market will continue to rise through the end of this year.”
RELATED: Hulu Launches Ad-Free Option
The report also found that Netflix has the highest Net Promoter Score among OTT services, followed by WWE Network, Hulu and MLB.TV. NPS is a measurement of customer loyalty and the likelihood that those customers would recommend a product or service to others.
“Net Promoter Scores reveal the motivations behind many of the churn rates we are seeing,” noted Ruby-Ren Bond, research analyst at Parks. “For example, Hulu has a higher churn rate than Amazon, but its NPS is much stronger than Amazon’s. That indicates the retail side of Amazon’s Prime service is likely a strong factor than the video service in retaining is subscribers.”
