Consumers With Multiple Video Service Subs Also Watch a Lot of Free Video, Says Report

More than half of U.S. households subscribing to over-the-top video services pay for more than one service, Parks reported Thursday. Of the households with multiple subscriptions, 81 percent use Netflix plus another service, typically Amazon or Hulu, and the average number of subscriptions per household is rising, said analyst Brett Sappington. “Video services do not necessarily have to displace a Netflix” or another heavyweight service to gain market share, Sappington said. “Services can potentially find success as a complementary offering." Sappington said consumers who pay for OTT services are more likely than nonsubscribers to watch free online video services, and the more OTT video subscriptions consumers have, the more likely they are to use free or “freemium” video services that offer different service tiers. Some 30 percent of households with one subscription service use at least one free, ad-supported online video service. The ratio jumps to 47 percent for households subscribing to three premium services and to 63 percent for households subscribing to five or more services.