To be sure, perhaps 45 percent to 50 percent of U.S. broadband households now use paid over-the-top (OTT) video services, either subscription or transactional, according to Parks Associates. That is up slightly over about a year’s time.

Including “free” sources such as YouTube, perhaps 70 percent of Internet users watch at least some over the top video.

Parks Associates also notes that 37 percent of consumers 18 to 24 view online video is their most important video source.

More than 40 percent of U.S. broadband households selected online video as one of the top three important sources of video, topping rental DVDs at 25 percent and 13 percent who said owned Blu-ray discs were among the top three sources.

From the article, "Transition to Online Video Will Not be Gradual When it Happens" by Gary Kim.

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