55% of US broadband households now own a smart TV

Parks Associates’ latest whitepaper OTT Streaming Trends to Watch in 2022 reports 55% of US broadband households own a smart TV, pushing this device to be the default platform for streaming content. The whitepaper features insights from the research firm’s entertainment research team as they analyze the anticipated trends and market shifts for 2022. Parks Associates is also hosting the virtual session “Video Services: Bundles, Data, and Measuring Success” today as part of the fifth annual Future of Video: OTT, Pay TV, and Digital Media.

“Rapid changes in the market over the past two years, combined with continually shifting customer preferences, have forced service and device suppliers to adjust and adapt on an almost daily basis,” said Eric Sorensen, Senior Contributing Analyst, Parks Associates. “The standard in service now is to deliver desirable content so that consumers can view it when, where, and how they want it. Service providers, both conventional and online, will have to continue to adjust as consumer demands continue to evolve.”

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Parks Associates expects smart TVs to cement their position as the default connected streaming platform in 2022. Consumers are increasingly interested in having all their entertainment available on a single device, and as smart TVs have become more affordable, with improved user interfaces (UIs), they offer an attractive integrated option for viewing all content.

Parks Associates also anticipates streaming services in 2022 will begin to recognize churn as a normal part of doing business. The average churn rate in 2020 was 40%; the current percentage is 45%. Streamers today typically subscribe to one or more foundational services – Netflix, Amazon Video, Disney+, or Hulu – and then add three or more additional services, each offering unique and differentiated content, from which consumers unsubscribe once they no longer see the value in the cost or the content.

“We also expect the traditional business models for movie windowing releases to erode more in 2022,” Sorensen said. “The box office will regain some of its strength, as ‘experience’ releases like sci-fi and action-adventure will continue to draw people to the theater, but for many films, movie studios generally benefit from bypassing exclusivity and releasing through multiple channels, including theaters and direct-to-consumer. In 2022, we will see more of this hybrid windowing strategy and experimentation.”