New white paper developed in partnership with Adeia examines the role of interactive services to improve subscriber engagement in a highly saturated US video streaming market
DALLAS, April 4, 2023 /PRNewswire/ — Parks Associates today released the white paper Leaning In: Engaging Viewers with Interactive Video, in partnership with Adeia. The paper explores how the changing streaming services landscape is creating new opportunities for interactive video to better engage with the current generation of viewers. Parks Associates’ quarterly survey of 10,000 US internet households finds 36% of over-the-top (OTT) subscribers (an estimated 32 million households) fall into the “service hopper” category: consumers who dynamically churn in and out of subscriptions.
With 87% of US internet households subscribing to OTT video services, the market is highly saturated. There are few unserved market segments to pursue, which means the main path to growth will come from pulling subscribers away from competing services. This dynamic is prompting streaming providers to find new ways of retaining viewers through deeper engagement. A full 44% of subscribers reported canceling a service within 12 months in 2022, according to Parks Associates.
“Interactive video creates lean-in experiences by giving viewers the option to choose when, where, and how to enjoy their digital entertainment,” said Sarah Lee, Research Analyst, Parks Associates. “Solutions that enable co-viewing, gamification, shoppable ads, or sports betting offer OTT providers opportunities for differentiation. These solutions can contribute to a level of subscriber engagement that makes service cancellation a less attractive option.”
The white paper examines current expectations among video viewers and describes the interactive features that could meet consumer demands for better engagement while generating new revenue streams for OTT providers. Parks Associates research finds 9% of US internet households have placed a bet while watching a sports program, either through an app or through an interactive betting feature within the stream.
“Consumers are accustomed to the highly interactive relationships they have with mobile phones, tablets, and other personal devices. It was only a matter of time before those expectations worked their way into their living rooms,” said Serhad Doken, Chief Technology Officer of Adeia.
“Consumers have never had more options for their digital entertainment. OTT providers that hope to thrive in a highly penetrated market will have to do more than simply deliver a compelling content library. To protect their business and reduce churn, streaming services will seek technologies that allow – and encourage – subscribers to actively participate in tailoring experiences to their needs and desires,” Doken said.
About Parks Associates
Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences. http://www.parksassociates.com
Adeia invents, develops and licenses fundamental innovations that shape the way millions of people explore and experience entertainment in an increasingly connected world. From TVs to smartphones, and across all types of entertainment experiences, Adeia’s technologies allow users to manage content and connections in a way that is smart, immersive and personal. For more information, please visit www.adeia.com.
SOURCE Parks Associates