Apple TV+ Joins an Industry that has Been Stagnant for Three Years
Parks Associates recently released a study that uncovered household spending on subscription over the top (OTT) services has been stagnant for the past three years. Average spending on these services has consistently come in under $8 monthly since 2016.
“The stability in average household spend belies the activity going on under the surface,” said Brett Sappington Senior Director of Research, Parks Associates. “2019 may be poised to break that trend. Netflix, Hulu, and Amazon continue to pack on new subscribers. At the same time, services like ESPN+ are also experiencing phenomenal growth, and new offerings from Disney and WarnerMedia are set for release later this summer. One of three things will happen—more households will become OTT streaming households, rival services will begin to pull subscribers away from Netflix, or that spending number will go up.”
While there might be some consumers who opt for OTT video services with all the bells and whistles, a large portion of us are okay with a mere one or two inexpensive ones to fulfill our TV binging habits. Then there’s also a pretty big chunk of people–30 percent to be exact—who get away with not spending any money at all. In other words, that group is likely using a distant relative’s account to access their shows and movies.
All of this interesting data comes at a time when Apple just announced plans to roll out its very own subscription service, Apple TV+. The tech giant recruited some pretty big names to announce the news, including Oprah Winfrey, Steven Spielberg, Jennifer Aniston, Reese Witherspoon, Steve Carell, Jason Momoa and even Big Bird. It’s abundantly clear that Apple is relying on these Hollywood bigwigs to position itself as a contender among streaming services like Netflix, Amazon, and Hulu. Whether or not they will be able to shake up the industry though will be interesting to see.