22 APR 2022

More than half of oTT subscribers prefer Integrated OTT services

According to a recent study conducted by Parks Associates, 59% of viewers prefer unified bundles that combine their OTT services with other household subscriptions, while 48% feel their home internet service provider adds more value when online video services subscriptions are offered.

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A report recently released by Parks Associates, "Home Service Bundles: OTT as a Value-Added Service," examining the uptake of home service bundles with OTT video services reveals that more than half of OTT subscribers prefer one bill and one account for all of their home subscription services. “Simplicity has a fundamental appeal to consumers that service providers can leverage,” said Paul Erickson, Research Director, Parks Associates. “Consumers are seeing value and simplicity in receiving a bundle of channels and services from a single source, and they are increasingly seeking out options that offer OTT services bundled with their home services.”  

Approximately 59% of viewers prefer the integration, while 48% feel their home internet service provider adds more value when online video services subscriptions are offered. The study also finds that 40% of OTT subscribers report that 100% of their OTT services are bundled through a home service provider.

In contrast, just 31% of OTT subscribers report none of their services are bundled through a home service provider. While some of these consumers prefer to keep their video and home services separate, many are simply not aware of the availability of online video service bundled offerings. “There is considerable demand for OTT bundles from service providers for the added simplicity, value, and convenience that consumers feel they receive," Erickson said. “The addition of OTT services to service providers’ subscription and bundled service offerings is a viable way to add value, increase long-term ARPU, reduce subscriber churn, and increase stickiness with consumers.”   

There is considerable demand for OTT bundles from service providers for the added simplicity, value, and convenience that consumers feel they receive. The addition of OTT services to service providers’ subscription and bundled service offerings is a viable way to add value, increase long-term ARPU, reduce subscriber churn, and increase stickiness with consumers.” Paul Erickson Research Director, Parks Associate