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Netflix out in front as video streaming services infiltrate US households

More than two-fifths of American households subscribe to an online streaming service, according to a new report from media measurement company Nielsen.

It follows a huge growth in the amount of video streaming services available to watch, with ABC and Dish Network both launching streaming services in the US, and HBO Now coming next month.

Netflix is the clear favorite in the US, with 36 per cent of households subscribing to watch original series, with the likes of “House of Cards”, “Orange is the New Black” and “Better Call Saul”, all very popular on the service.

Amazon Instant Video comes in second with 13 per cent of the American households choosing the service, and Hulu Plus sits in third with 6.5 per cent of households. The two have been fighting against Netflix for years, but the huge rise in subscriptions over the past two years has put them far behind in terms of US penetration.

The report also claims only 10 per cent subscribe to two of the video streaming services, and 2.6 per cent subscribe to three. Things like Twitch.TV subscriptions, Sling TV and ABC ‘All Access’ were not included in this report.

Unsurprisingly, the places with higher broadband speeds tend to be the ones with the video streaming subscriptions, and they actively watch more than those with slower broadband connections.

It does show that TV in America is quickly moving away from cable and satellite, and onto the internet. It is part of the reason why Time Warner allowed HBO to get the head start in the race to bring cable to the internet with HBO Now.

More subscriptions services are bound to show up in the next month, if not from individual channels, then from providers like Dish Network, DirecTV, Comcast and other internet and cable providers.

Apple is also reportedly looking into a video streaming service that incorporates channels from Disney, AMC, CNN and other networks. Apple’s CEO Tim Cook hinted at that in the Apple Watch keynote earlier this week, stating that the HBO Now exclusivity deal was just the beginning for Apple in TV.

David has been a technology journalist for over six years, covering a wide range of sectors. He currently researches apps, app sectors and app markets for Business of Apps, and has written for ITProPortal, RTInsights, ReadWrite, and Digital Trends.