About a quarter (23%) of millennial heads of household in America are over-the-top (OTT)-only households, higher than the national average, according to Parks Associates.
Across the country, the average is 15% among 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."
Nearly 60% of OTT video services in the North American market are subscription-based, and 64% of US 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.
Meanwhile, approximately 20% of US broadband households cancelled at least one OTT video service in 2015. About 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.
Hulu and Amazon have notable churn rates as well. About 14% of U.S. broadband households subscribe to Hulu, and 7% of U.S. broadband households cancelled the service in 2015, which is roughly the same as Q2 2015. And, 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.
She added, "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. Start-ups and incumbents alike are experimenting in balancing content offerings, content costs, revenue generation, and consumer appeal."
The research pairs with another report on OTT in Latin America in which is stated that nearly one in ten millennials cut the cord in Argentina during the last year and 17% won’t ever subscribe - high numbers in a pay-TV market with almost 85% penetration.
Source: http://www.rapidtvnews.com/2016061543240/a-quarter-of-us-millennials-are-ott-only.html#axzz4C5O8aduo