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State of the Screens

Over-the-top-only U.S. households nearly tripled since 2013, impacting TV ad dollars

By April 9, 2018No Comments

14.1M households now receive all of their TV through streaming (OTT) according to a new Video Advertising Bureau study.

Source of TV content:
1) Traditional pay-TV (Comcast, etc.) — 74%
2) Broadcast only (digital antenna) — 12%
3) Streaming only (Netflix, etc.) — 11%
4) Streaming pay-TV (Sling, YouTube TV, etc.) — 3%

Streaming share of TV viewing hours:
1) 2015–5%
2) 2016–8%
3) 2017–11%

Share of OTT viewing time:
1) Netflix — 40%
2) YouTube — 18%
3) Hulu — 14%
4) Amazon — 7%
5) Other 21%

There are currently 820M connected video devices in the U.S.!

Share of connected video devices:
1) Smartphone — 30%
2) Connected TV — 20%
3) Desktop/laptop — 15%
4) Tablet — 11%
5) Game console — 8%
6) Blu-ray player — 6%
7) Streaming media player — 6%
8) Streaming stick — 4%

Quick math:
1) 820M connected TV devices
2) 120M TV homes in the U.S.
3) 6.9 connected video devices per home

Quote from Monica Peart — Senior Forecasting Director @ eMarketer:
“The shift of audiences to OTT viewing is changing the climate of the TV ad market… As ratings for TV programming continue to decline, advertiser spending will also continue to see declines, especially in years that do not boast major events such as presidential elections and Olympic games.”

Our thought: There is a tremendous amount of opportunity w/ OTT, but the ecosystem is still fragmented and requires significant effort to execute.

More. AMC Forms Data-Driven Unit, Focuses On Media Planning

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.