Parks Associates today announced that the number of OTT subscriptions in the US will increase from nearly 230 million in 2021 to more than 277 million in 2026, an increase of over 20% in five years. The new whitepaper, The Evolving Digital Media Landscape, developed in partnership with Everise, also reveals that 80% of millennials and Gen Zers say they view video on more than one platform at least monthly.
The research details consumer life stages and strategies for OTT providers to succeed in the changing market.
“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, Parks Associates. “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.”
Parks Associates research also reveals that in Q1 2021, the average OTT subscription in US broadband households is roughly two and a half years and has an extremely strong correlation 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. By contrast, 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, 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 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.”
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.
Palmer continues, “Information providers can design support services that appeal to consumers at different life stages, who prefer different channels, and adapt as their needs evolve.”
