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More than half (53%) of Wi‑Fi connected households in the United States accessed at least one over‑the‑top (OTT) service in December 2016, according to comScore. While Netflix remained the dominant service, other platforms have been narrowing the gap.
comScore reports that these OTT households were actively watching streaming content: on average they accessed OTT services on 19 separate days during the month and spent about 2.2 hours per viewing day. Viewing patterns for OTT closely mirror traditional linear television, with the greatest concentration of activity occurring during conventional primetime hours.
In December 2016, Netflix reached roughly 75% of OTT households, a commanding presence. YouTube also held a substantial OTT footprint, being viewed in about 53% of OTT homes. Amazon Video ranked third with reach in 33% of those homes, while Hulu reached 17%. Overall, there were 11 OTT services that each reached one million or more homes in the month.
When measured by engagement, Netflix was the second most engaging service, with an average of 28 hours of viewing per household per month. Sling TV, which offers a “skinny bundle” of live network content, led on a per‑household basis with 47 viewing hours per month.
Although three in four OTT homes watched Netflix, a significant portion of viewers also consumed competing services. More than 30% of TV audiences for YouTube and Twitch did not watch Netflix on their televisions; for Hulu that figure was 14%. Amazon Video has emerged as a noteworthy challenger as well, helped by its integration with Amazon Prime and the Fire TV platform, which appears to be expanding the overall OTT audience.
“OTT is a growing and increasingly important segment of the video viewing landscape, and the popularity of multiple services beyond Netflix suggests the market is poised for more growth,” wrote Mike Rich, vice president of emerging products at comScore. With roughly half of households not yet engaging with OTT as of December 2016, there remains substantial opportunity for additional services to reach those viewers.
The open question is whether — and to what degree — Netflix can maintain its leadership position as the OTT market continues to grow and diversify.