Parks Associates released new data suggesting that the number of OTT subscriptions in the U.S. will increase from nearly 230 million in 2021 to more than 277 million in 2026.
That’s an increase of more than 20% in five years and it could have something to do with Millennial and Gen Z consumers, 80% of whom Parks said view video on more than one platform at least monthly.
“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,” said Kristen Hanich, senior analyst at Parks Associates, in a statement. “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.”
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Parks Associates also said that during the first quarter of 2021, the average OTT subscription length in U.S. broadband households is approximately two and a half years. The firm said the length of subscriptions tie in closely with age; subscription lengths for younger consumers are much shorter than for older consumers. Older consumers subscribe to fewer services but keep them for a longer period, Parks said, while younger consumers may subscribe to a larger number of services but are more likely to churn through them.
“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 at Everise, which worked with Parks on a new white paper. “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 multiplatform viewing further drives the need for these brands to protect both themselves and their customers with a multichannel content moderation and omnichannel support strategy.”