Parks Associates' most recent report revelaed that 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.“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," Senior Analyst, Parks Associates Kristen Hanich, said. "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.”
The Evolving Digital Media Landscape, developed in partnership with Everise, similarly revealed that 80% of millennials and Gen Z audiences can attest to an increasing digital presence in recent years. The research details consumer life stages and strategies for OTT providers to succeed in the evolving market. “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,” President of Everise, Dave Palmer said.
The researcher's data also revealed that in Q1 2021, the average OTT subscription in US broadband households is roughly two and a half years and has a strong connection 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 overturn their interests. “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," Palmer said. "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.”
Competition related to OTT video and other forms of entertainment will continue to rise 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," Hanich said.
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.” Dave Palmer President, Everise