Netflix Subscriber Base Skews Older for First Time

Netflix’s consumer base is beginning to lose its youth skew as older groups increase usage and young audiences flock to cinemas, according to Ampere Analysis’s consumer data for Q3.

Ampere reported that, in some mature markets, 25- to 44-year-olds are now more likely to be Netflix subscribers than 18- to 24-year-olds for the first time. Among the 45-plus cohort, global monthly usage saw a 22 percent increase in the past two years, while there was only a 5 percent growth rate for the younger groups.

This change in demographic usage is driven partly by young consumers being the first to return to out-of-home entertainment venues. Nearly half of returned cinemagoers in Q3 were under age 35, Ampere found. Before the pandemic, the under-35 group represented just over a third of cinemagoers.

Minal Modha, principal analyst and consumer research lead at Ampere Analysis, said: “We can see the pandemic’s impact as older audiences turned to Netflix for entertainment during the numerous lockdowns. As we emerge from the pandemic, it’s the younger demographics who are spearheading the return to the cinema in search of a more social viewing experience.”

Though Netflix’s percentage of 18- to 24-year-olds has decreased, AVOD usage of that age group increased. In Q3 2021, 30 percent of those in the 18-to-24 group had used AVOD services, compared to only 9 percent in Q3 2020.

AVOD usage increased across the board, as ownership of streaming boxes and sticks increased by 18 percent since Q3 2019, before the pandemic began. In addition, Ampere reported that 34 percent of internet users in the U.S. have used an AVOD service, compared to 17 percent in the same time period last year.

Modha added: “The growth in AVOD usage partly reflects how expensive the streaming market is becoming. The fact that younger audiences are now engaging with AVOD will be welcome news for platform owners and will make the services even more attractive to brands.”

Ampere also noted that younger audiences’ viewing habits changed in regard to the Olympics as well. While viewing of the 2020 Tokyo Olympic Games was still driven by those aged over 45, a higher proportion of those under 35 self-identified as Olympics fans. Prior to the Tokyo Olympic Games, 24 percent of fans were under 35. By Q3, though, this grew to 28 percent.