The number of over-the-top TV subscription in the U.S. is expected to increase to 277 million in 2026 from nearly 230 million in 2021, according to a new report from Parks Associates.
That amounts to a gain of 20% over the five year span.
The data comes from a white paper called The Evolving Digital Media Landscape from Parks in association with Everise.
Parks said that on average in the first quarter of 2021, the subscribers have had their OTT subscription for about 2½ years. 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.
The report also found that 80% of younger adults--millennials and Gen Zers--said they view video on more than one platform monthly.
“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.”
OTT video will be competing with other forms of entertainment.
“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.
