If the growth is realised, says The Evolving Digital Media Landscape paper, written in conjunction with Everise, this would mean more than 277 million subscribers by 2026, an increase of over 20% in five years.
The research detailed consumer life stages and strategies for OTT providers to succeed in the changing market. Parks found that in 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 were found to 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. In all, more than of millennials and Gen Zers say they view video on more than one platform at least monthly.
“The delivery and digestion of streamed content market is heavily influenced by the ability to attract and retain viewers,” said Everise president Dave Palmer. “To ensure a positive brand experience, media companies must consider a myriad of preferences and behaviours – 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.”
Parks also noted in The Evolving Digital Media Landscape that competitiveness between OTT video and other forms of entertainment will continue to increase with a larger share of consumers’ time going towards socialisation, 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 Kristen Hanich, senior analyst, Parks Associates. Rapid TV News