83% of US Internet Households Subscribe to at Least one OTT Service

New whitepaper developed in partnership with FPT Software addresses how streaming businesses can use artificial intelligence (AI) and machine learning (ML) to drive engagement and monetization

Parks Associates’ recent consumer research finds that 83% of US internet households now subscribe to at least one OTT service, while 45% still subscribe to the traditional linear pay-TV service model. The firm’s new whitepaper, Engaging Next-Gen Video Viewers: Leveraging AI and ML, developed in partnership with FPT Software, addresses the increased use of video services, content preferences, discovery challenges, and the role of bundles. ott service

“The most successful video services going forward will be dominated by innovative technologies, including AI and ML, that drive sustained high levels of engagement with consumers through advanced content moderation and curation,” said Sarah Lee, Research Analyst, Parks Associates.

Parks Associates: Penetration of Legacy Pay-TV vs. OTT Video Services

AI and ML can create a personal experience by leveraging data to understand patterns and relationships at a very granular level, beyond the recommendations that “standard” big-data-based systems.

“There is a vast range of AI and ML use cases in media and entertainment – companies are only starting to scratch the surface. These can range from generating richer metadata that can be used to drive experiences to reducing time required for content preparation to driving deeper advertising engagement,” said Ira Dworkin, Managing Director of Communications, Media and Entertainment, FPT Software. “Leveraging and extending the data that already exists for many M&E companies to build bespoke AI/ML models can help to drive new insights, ultimately reducing churn and improving subscriber loyalty.”

Parks Associates research finds that 30% of US internet households are “service hoppers” or streaming video subscribers who frequently switch services and re-subscribe multiple times. Businesses that harness AI can develop more effective and efficient strategies to keep these viewers from “hopping.”

“By understanding the viewer on a deeper, personal level, businesses can deliver a more positive, individualized experience that drives acquisition, satisfaction, and retention,” Lee said. “AI and ML models can provide this understanding and identify factors that result in higher customer acquisition and long-term subscriptions.”


Some of the Best OTT Streaming Services of 2022 ott service

There are many OTT streaming services on the market. Some of these are niche services, and others have broader offerings and are geared towards a more general audience. Some focus on OTT live streaming and others only offer on-demand content. Most offer free content, premium content, or a mix of both.

What all OTT streaming services have in common is that they all use the internet to deliver video content.

With that in mind, let’s take a look at some of the most popular OTT streaming services.


Netflix is one of the largest on-demand streaming platforms on the internet, featuring over 15,000 titles. Netflix features titles from other production companies as well as original content that is only available on its platform.

Netflix uploads entire seasons of television shows at a time, and it is popular among people who enjoy “binge-watching.”


Disney+ is an OTT streaming service that offers access to films and TV series that are owned by The Walt Disney Company. These include programs by Disney, Pixar, Marvel, Star, National Geographic, and Star Wars.

Disney+ costs $7.99/month or $79.99/year for unlimited, ad-free streaming access.


Hulu is another popular OTT streaming service. Hulu is a bit different than Netflix in the sense that new episodes are typically uploaded the day after they air. Hulu offers four pricing plans, including:

  • Hulu: $5.99/month
  • Hulu (No-Ads): $11.99/month
  • Hulu + Live TV: $64.99/month
  • Hulu (No-Ads) + Live TV: $70.99/month

Amazon Prime

Prime Video is the OTT streaming service from Amazon. It offers unlimited access to a library of video content with a subscription, and it also has additional content available for rent or purchase.

One unique feature of this platform is that users can purchase access to films that are still in theaters. Prime Video also has access to live programming, like sporting events.


HBO Max is an OTT video streaming service that mostly offers content that is from WarnerMedia, which is the parent company of HBO. An interesting aspect of HBO Max is that it offers access to movies that are still in theaters at no additional cost. HBO Max comes in two pricing tiers. Streaming with ads costs $9.99/month, and ad-free streaming is $14.99/month.


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