More than 70% of consumers subscribe to over-the-top video services due to specific titles available through each service, according to a new study conducted by Parks Associates.
In addition, over a third of consumers subscribe to OTT services to access original content. The size of the video library and the amount of recent content are also important factors.
Service availability is another critical consideration, the study showed. While in-home viewing of content with a mobile device is common, most consumers want to watch on the largest screen available.
In general, television-based viewing is preferred to viewing on a computer, which is itself more popular than tablet-based viewing.
Consumers also expect an OTT service to be available on multiple platforms. Almost half of those who watch video on connected devices want to be able to use four or more different connected platforms to access OTT video content.
The report also identified several areas where OTT services will need to excel.
First, service providers will need to offer differentiated features such as original content, promotional programs and community building.
Second is accurate targeting. Heightened competition is forcing all players to find defensible niches that they can identify, target and hold against competitors.
Third is service discovery and availability – viewers must first be able and motivated to find and use the service itself.
And fourth is a path to profitability. Current approaches include ad-free subscriptions, restricted content subscriptions, bundling of linear channels online, limited subscriptions with premium transactional use and loyalty programs.