SOURCE: Parks Associates

Parks Associates

June 14, 2016 09:00 ET

Parks Associates: 23% of Millennials Are OTT-Only Broadband Households

Analyst Addresses OTT Video Market at BroadbandTV This Week With NeoNova Networks and SkitterTV

DALLAS, TX--(Marketwired - Jun 14, 2016) - Parks Associates will share its OTT and cord-cutting research, including the latest from its industry-leading OTT Video Market Tracker, this week at BroadbandTV at FTTH Connect. This research firm finds that 23% of Millennial heads of household are OTT-only households, higher than the national average of 15% among all U.S 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."

Bond will moderate the session "Evolution of OTT" on June 15 from 3:45-4:45 p.m. at the Gaylord Opryland Resort and Convention Center in Nashville. Confirmed panelists include Chris Beatson, CTO, NeoNova Networks, and Robert Saunders, President & Co-Founder, SkitterTV.

In addition to the monthly OTT Video Market Tracker, Parks Associates recently released two OTT research products:

"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 U.S. broadband households increased from $3.71 per month in 2012 to $6.19 per month in 2015.
  • Approximately 20% of U.S. broadband households cancelled at least one OTT video service in 2015.
    • 5% of U.S. 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 U.S. broadband households subscribe to Hulu, and 7% of U.S. broadband households cancelled the service in 2015, roughly the same churn rate from Q2 2015.
    • 24% of U.S. 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.

Parks Associates is supporting BroadbandTV. For more information about Parks Associates research, contact sales@parksassociates.com. To schedule an interview with an analyst, contact Holly Sprague at hsprague@gmail.com.

About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit: Engaging Consumers, and Smart Energy Summit: Engaging the Consumer. http://www.parksassociates.com

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