23% of U.S. millennial heads of household are OTT-onlyTuesday, June 14th, 2016
Parks Associates: 23% of Millennials Are OTT-Only Broadband Households
- Analyst Addresses OTT Video Market at BroadbandTV This Week With NeoNova Networks and SkitterTV
DALLAS, TX — Parks Associates will share its OTT and cord-cutting research, including the latest from its industry-leading OTT Video Market Tracker, this week at BroadbandTV at FTTH Connect. This research firm finds that 23% of Millennial heads of household are OTT-only households, higher than the national average of 15% among all U.S broadband households. The firm’s analysts also note that 61% of Millennials subscribe to both pay-TV and OTT services, also higher than the national average of 52%.
“Younger consumers are willing to subscribe to pay-TV service, provided the offerings align with their expectations,” said Ruby-Ren Bond, Research Analyst, Parks Associates. “In particular, Millennials show higher-than-average affinity for popular culture and premium movie channels as well as programming for younger children.”
Bond will moderate the session “Evolution of OTT” on June 15 from 3:45-4:45 p.m. at the Gaylord Opryland Resort and Convention Center in Nashville. Confirmed panelists include Chris Beatson, CTO, NeoNova Networks, and Robert Saunders, President & Co-Founder, SkitterTV.
“OTT services are experimenting with a variety of models in order to differentiate and find their niche within the crowded North American market, which has over 130 active OTT video services,” Bond said. “Start-ups and incumbents alike are experimenting in balancing content offerings, content costs, revenue generation, and consumer appeal.”
Parks Associates OTT data show:
- Nearly 60% of OTT video services in the North American market are subscription-based.
- 64% of U.S. broadband households subscribe to an OTT video service, up from 59% in 2015.
- 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.
- Approximately 20% of U.S. broadband households cancelled at least one OTT video service in 2015.
- 5% of U.S. broadband households cancelled Netflix in 2015, up from 4% of households reporting in 2Q 2015 that they cancelled the service in the past 12 months.
- 14% of U.S. broadband households subscribe to Hulu, and 7% of U.S. broadband households cancelled the service in 2015, roughly the same churn rate from Q2 2015.
- 24% of U.S. broadband households report having a subscription to Amazon so that they can stream video. The churn rate for Amazon’s video service declined slightly from Q2 2015 to the end of the year.