March 9, 2016 | Authored by: Vindicia Team Blogs
Streaming devices rise as more homes consume OTT content
According to Variety, more than half of American homes have at least one device capable of streaming over-the-top content. The website recently announced research from The NPD Group's latest Connected Home Entertainment Report. The quarterly statement shares statistics regarding consumer devices that stream OTT content. It includes information on TVs, tablets, smartphones, computers, video game consoles and more.
According to the data, 52 percent of all U.S. homes with Internet access have equipment that streams video to directly their televisions. In fact, most households don't stop at just one - the average family has about three video streaming devices.
The research broke down the machines into four categories: Blu-ray players, smart TVs, video game consoles and streaming devices such as Apple TV and Roku. While game consoles were the most widely used, streaming players grew at a faster rate. This is likely due to the fact that Amazon, Google and Roku released new boxes and adapters during the past holiday season.
Overall, the number of homes with streaming devices is up by 6 million over numbers seen in the previous quarter.
Switching from traditional cable
Boston University noted many consumers have started to question their traditional cable subscriptions. The average cable service costs $99 per month, and that price is increasing. What's more, consumers generally watch only 17 of the 200 available channels provided by cable.
"Everyone keeps talking about how TV viewership numbers are going down, but these new connections and relationships and technologies are allowing people to watch more," Amy Young of CBS Networks told the school. "Average viewership jumps 88 percent when you look at the full 35-day multiplatform window versus live and same-day viewership."
Instead of paying high prices for cable, consumers are flocking to streaming content provided on a subscription billing model. They're choosier about the programming they watch and would rather spend less money for specific titles as opposed to a lot of money for television they don't enjoy. The numerous OTT content providers and devices only makes the transition for cable easier. As The NPD Group mentioned, such devices are one of the fastest-growing methods of watching videos online. A study by Strategy Analytics found the most popular brands within that category are the Apple TV and Google Chromecast, Multichannel.com reported.
Strategy Analytics's study found Chromecast ended the year stronger than Apple TV, despite having lower sales overall. The Google product made up 35 percent of the 42 million streaming units shipped in 2015. Apple TV came in second place, followed by Roku and Amazon Fire. Ultimately, however, Apple leads the pack with 37 million devices shipped since 2007. Chromecast sold 27 million during the same time period, and it is quickly catching up.
With each passing year, OTT content providers gain traction as more consumers see the benefits of switching from traditional television services. Viewers get to pick and choose the shows they'd like to see rather than be subject to the schedule and programs of a major cable network.
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