23% of Millennial heads of household are OTT-only households, higher than the national average of 15% among all US broadband households, according to Parks Associates.
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.”
“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 US broadband households increased from $3.71 per month in 2012 to $6.19 per month in 2015.
Approximately 20% of US broadband households cancelled at least one OTT video service in 2015.
5% of US 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 US broadband households subscribe to Hulu, and 7% of US broadband households cancelled the service in 2015, roughly the same churn rate from Q2 2015.
24% of US 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.