85% of Millennials Use OTT Video Services
New video research from Parks Associates finds more than 85% of millennials in U.S. broadband households subscribe to at least one OTT video service. This research comes from Parks Associates’ OTT Video Market Tracker, which includes an exhaustive analysis of market trends and profiles of OTT video service providers in the U.S. and Canada, such as Netflix, HBO, YouTube and Amazon. The Tracker features a new way to blend company profiles with industry research data and analysis of competing players’ strengths and weaknesses in the space.
According to AudienceSCAN, 25- to 34-year-olds make up the biggest age group of Streaming Video Service Subscribers at 20.6%, and 20.7% of this audience’s annual income is $25,000 to $49,999. About 36% live in a city or metropolitan area and 53% don’t have children living at home.
“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. The more interesting and important question is how many subscriptions they will keep,” said Brett Sappington, Senior Director of Research, Parks Associates. “More than one-fourth of millennials subscribe to three or more OTT services, and more than 50% subscribe to at least two.”
According to AudienceSCAN, popular services among Streaming Video Service Subscribers include Netflix (53.4% of U.S. adults), Amazon Prime (33.7%) and Hulu (21.3%).
The trend is also visible, though less pronounced, among the other generations as well. OTT service penetration among baby boomers and older generations grew more than 10% between the two groups as a whole from 2016 to 2017.
“For consumers, self-aggregating content is simply part of the entertainment experience, particularly millennial households,” said Hunter Sappington, Researcher, 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.”
As it turns out, TV is the best way to advertise to Streaming Video Service Subscribers. According to AudienceSCAN, 64.3% of this audience took action after seeing a TV commercial last year. However, this audience can still be targeted through print. A little over 73% of subscribers get most of their local news from the newspaper and last year 58.6% received ads or coupons in their mailboxes that drove them to take action.
AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. Media companies and agencies can access AudienceSCAN data through the AudienceSCAN Reports in AdMall.