A big majority – more than 85% -- of U.S. millennials in broadband homes subscribe to least one OTT video service, according to new data from Parks Associates.
Broken down further, more than one-fourth of those millennials subscribe to three or more OTT services, and more than half take at least two subscription OTT video services.
Those totals suggest that the market among that age group is not only saturated, but present a significant challenge for OTT services retain existing subs.
“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,” Brett Sappington, senior director of research at Parks Associates, said in a statement. “The more interesting and important question is how many subscriptions they will keep.”
In its latest OTT Video Market Tracker, which analyzes trends and profiles of nearly 150 over-the-top service providers such as Netflix, YouTube and Amazon, in the U.S. and Canada, the research firm also found that more than 70% of U.S. broadband homes have an internet-connected entertainment device.
That data also shows that consumers, on average, own 8.6 connected CE products, up 87% since 2010. Some 70% of U.S. broadband homes have an internet-connected device, and 17% own a smart home device and an internet-connected entertainment device, the firm said.
Parks Associates predicts that more than 265 million households worldwide will have north of 400 million OTT video service subscriptions by 2022.