Findings from analyst firm Parks Associates’ OTT Video Market Tracker suggest that more than 85 per cent of millennials in US 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,” advised Brett Sappington, Senior Director of Research, Parks Associates. “More than one-fourth of millennials subscribe to three or more OTT services, and more than 50 per cent subscribe to at least two.”
The trend is also visible, though less pronounced, among the other generations as well. OTT service penetration among Baby Boomers and older generations grew more than 10 per cent between the two groups as a whole from 2016 to 2017.
“For consumers, self-aggregating content is simply part of the entertainment experience, particularly millennial households,” added Hunter Sappington, Researcher, Parks Associates. “Their evaluation criteria for services, and brand loyalty, differs from that of previous generations. To take advantage of this self-aggregation trend, providers need to understand the evaluation criteria consumers use for their OTT services, which can vary from household to household.”