Skip to main content

Upside Growth for U.S. OTT Video Streaming Market

The American video entertainment realm has continued to evolve during 2015. Market development in the traditional pay-TV sector has been particularly difficult. However, there are still some significant upside opportunities.

Baby Boomers comprise nearly a third of U.S. adult broadband users and are significantly more likely than other segments to subscribe to traditional pay-TV services.

According to the latest TDG Research study and data-driven analysis of this vital but oft-overlooked consumer segment, this makes them excellent candidates for the high-revenue sales of operator value-added services.

As TDG first noted earlier this year, the race-to-the-bottom that currently defines pay-TV operator strategy -- that is, the targeting of Millennials with low-cost bundles -- has deflects marketing resources away from efforts to grow ARPU among other subscribers.

"Unlike Millennials, Broadband Boomers are quite loyal to their current operators and have very deep pockets," says Nick Beyer, analyst at TDG.

TDG believes that Boomers are typically less tech-savvy than younger consumers, but they are increasingly connected. The question, then, is how can pay-TV operators better tap into the specific needs of this market segment.

TDG study findings indicate that 57 percent of Broadband Boomers have a net-connected TV set. Moreover, time spent viewing streaming video on a TV set is increasing among this segment.

Among smart TV users, 59 percent of Boomers report an increase in TV streaming over the last year. The same holds true for all streaming devices used by this market segment.

According to the TDG assessment, that's potentially good news for over-the-top (OTT) TV service providers, who have plenty of growth headroom among this segment.

Furthermore, the adoption of Netflix among this segment is currently 36 percent, which means that close to 40 percent of those Boomers with connected TVs have yet to subscribe to a streaming OTT video service.

Popular posts from this blog

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe