Parks Associates: Younger Generations Are More Volatile OTT Subscribers
The average subscription to an over-the-top streaming service in U.S. broadband households is roughly 2.5 years and has an extremely impacted by age, according to a study released this week by Parks Associates.
The media market research firm found that subscription lengths for younger consumers are much shorter than for older consumers, with older subscribers signing on for fewer services and keeping them longer.
In contrast, younger streaming customers tend to subscribe to a larger number of services but are apt to terminate them more quickly.
Parks Associates said the number of OTT subscriptions in the U.S. will increase more than 20% by 2026, rising from almost 230 million this year to more than 277 million in five years.
The whitepaper, co-authored with Everise and titled, “The Evolving Digital Media Landscape“, also indicates that 80% of millennials and members of Gen Z testified to watching video on more than one platform at least monthly.
The study indicates that time spent watching video is gradually shifting away from television among younger demographics, with Gen. Z respondents indicating they spend equal time each week viewing programs on PCs and TVs.
“People move out of their parents’ home, go to college or get a job, establish a career, marry and have children, eventually the children move out, and then they retire,” stated Kristen Hanich, Parks Associates senior analyst. “Throughout each stage, a consumer’s wants, needs, and priorities change as well. Of course, people are different and not every individual goes through every stage. These are trends that apply on a population level and are a useful way for marketers and businesses to target cohorts of individuals going through similar experiences.”
“We know all too well the changing digital media landscape and its impact on the customer experience. The delivery and digestion of streamed content market is heavily influenced by the ability to attract and retain viewers,” said Dave Palmer, President, Everise. “To ensure a positive brand experience, media companies must consider a myriad of preferences and behaviors – age, viewing habits, interests, available time, platform preference, etc. The emergence of multi-platform viewing further drives the need for these brands to protect both themselves and their customers with a multichannel content moderation and omni-channel support strategy.”
Competitiveness between OTT video and other forms of entertainment will continue to increase with a larger share of consumers’ time going towards socialization, in-person, recreation, vacation, and events. “Brands can leverage new engagement data to help design new services and improve their customer support and retention strategies, offering value to consumers both at-home on different platforms and on-the-go,” said Hanich.
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By Greg Tarr
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