U.S. Online TV - Statistics & Facts

The global online television industry is developing quickly. There were an estimated 124 million subscription video-on-demand users in the United States in 2017, and this figure is projected to rise to 160 million by 2022. Globally, the penetration rate of these services is set to hit 32 percent by 2022.

Today’s online TV users are young, middle class males and females, mostly Caucasian, and heavy users of mobile technology, especially smartphones. Their reasons for watching original TV programming online are clear – content and convenience are of high importance to those consumers.

Although online TV formats are gaining more and more enthusiasts, traditional TV has also experienced a small upturn in recent years. In the 2017/18 season, the number of TV households is due to increase to almost 120 million, following the slump to 114.2 million in the 2012/13 season. There is nevertheless a new phenomenon of cord-cutting developing which is seeing people turn to alternative methods to catch up with their favorite shows. There were an estimated 16.7 million cord cutters in the United States in 2016, a figure which is projected to reach over 40 million by 2021. Additionally, there were 32.5 million "cord never" consumers in 2016, meaning those who had never paid for a pay TV services. This number is also forecast to increase to 41 million by 2021.

Some of the key players in the VoD industry are Netflix, Hulu, and Amazon Prime, all of which offer their own original series, as well as old favorites. Speed of service plays a major role among consumers, who identified free 2-day shipping as the main reason for joining Amazon Prime. Fifteen percent signed up because of the unlimited instant streaming of movies and shows. All things considered, the on-demand model of video consumption is constantly developing and this is illustrated by the growing number of subscribers.



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