June 22, 2018
Considering the over-the-top video market was created due to millennials cutting the cord with traditional pay-TV, it’s no surprise the demo covets services such as Netflix, Amazon Prime Video and Hulu.
New data from Parks Associates finds that more than 85% of millennials in U.S. broadband households subscribe to at least one OTT video service.
“Overall penetration of subscription OTT video services among millennials has topped out, suggesting that those households that want such a subscription already have one or more. The more interesting and important question is how many subscriptions they will keep,” Brett Sappington, senior director of research, said in a statement. “More than one-fourth of millennials subscribe to three or more OTT services, and more than 50% subscribe to at least two.”
The trend is also visible, though less pronounced, among the other demos as well. Use of subscription streaming video among Baby Boomers and older generations grew more than 10% from 2016 to 2017.
“For consumers, self-aggregating content is simply part of the entertainment experience, particularly millennial households,” said Hunter Sappington, researcher at Parks. “Their evaluation criteria for services, and brand loyalty, differs from that of previous generations.
The younger Sappington contends pay-TV providers can take advantage of the self-aggregation trend, which can include software-recommended content, social media and mobility.
“Providers need to understand the evaluation criteria consumers use for their OTT services, which can vary from household to household,” he said.