Outpace national average of OTT streaming households
Twenty-three percent of broadband households headed by millennials have completely opted out of traditional pay-TV service for over-the-top (OTT) streaming, a Parks Associates survey found.
The percentage exceeds the national average of 15 percent among U.S. broadband households that have completely cut the cord.
For pay-TV companies, however, the millennial generation isn’t yet a lost generation. Sixty-one percent of homes headed by millennials subscribe to both pay-TV and OTT services, a rate higher than the national average of 52 percent, Parks said.
“Younger consumers are willing to subscribe to pay-TV service provided the offerings align with their expectations,” said analyst Ruby-Ren Bond. “In particular, millennials show higher-than-average affinity for popular culture and premium movie channels as well as programming for younger children.”
More than 130 OTT video services are active in North America, Parks noted.
From its first-quarter survey, Parks also found that:
• 64 percent of U.S. broadband households subscribe to an OTT video service, up from a year-ago 59 percent;
• 14 percent of U.S. broadband households subscribe to Hulu;
• 24 percent of U.S. broadband households have a subscription to Amazon to stream video; and
• almost 60 percent of the OTT video services in the North American market are subscription-based.
Parks also said average monthly spending on Internet-based subscription video-on-demand (SVOD) services among U.S. broadband households increased from $3.71 per month in 2012 to $6.19 per month in 2015.
About 20 percent of U.S. broadband households canceled at least one OTT video service in 2015, Parks noted.