A new study from Parks Associates indicates that more than 85 percent of millennials in U.S. broadband homes pay for at least one OTT service, while more than 50 percent subscribe to at least two.
“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,” said Brett Sappington, senior director of research at Parks Associates. “The more interesting and important question is how many subscriptions they will keep. More than one-fourth of millennials subscribe to three or more OTT services, and more than 50 percent subscribe to at least two.”
Parks Associates’ OTT Video Market Tracker also found that OTT penetration among Baby Boomers and older generations rose by more than 10 percent 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 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.”