Parks: Most New Streaming Video Subs Use Bundle, Third-Party Aggregator Options

Thursday, June 01, 2023

As the growth of consumers subscribing to streaming VOD services slows, how new users subscribe to a platform is changing. No longer are consumers primarily subscribing through the service’s app or website directly. The trend now involves access through third-party service aggregators such as Roku and Amazon Prime Channels or via bundled offerings, according to new data from Parks Associates.

The Dallas-based research firm reports that now only 37% of households subscribing to OTT services in the past year went directly through a service provider. At the same time, the churn rate for OTT video services is holding steady at 47%. Churn is the percentage of subscribers who drop service.

“Direct subscription has been losing ground to aggregation, and bundling is becoming more important,” Jennifer Kent, VP, research, Parks Associates, said in a statement.

Kent contends the churn trend underscores increased opportunities for marketers to target consumers through ad-supported VOD and free ad-supported streaming television platforms such as Chicken Soup for the Soul Entertainment’s Crackle, Paramount’s Pluto TV, Fox Corp’s Tubi, The Roku Channel and Amazon Freevee, among others.

Parks will be hosting its next virtual Future of Video session “Advertising and Live Content: Measurements and Investments” on June 15.

From the article, "Parks: Most New Streaming Video Subs Use Bundle, Third-Party Aggregator Options," by ERIK GRUENWEDEL.

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