Nearly a quarter of millennial heads of household are over the top (OTT)-only, which is higher than the national average of 15% among US broadband households.
According to research from Parks Associates, 61% of millennials subscribe to both pay TV and OTT services, which is 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 at Parks Associates. “In particular, millennials show higher-than-average affinity for popular culture and premium movie channels as well as programming for younger children.”
Additional Parks Associates data showed that nearly 60% of OTT video services in the North American market are subscription-based, with 64% of US broadband households subscribing to an OTT video service, up from 59% in 2015.
Approximately 20% of US broadband households cancelled at least one OTT video service in 2015, with 5% of U.S. broadband households cancelling Netflix in 2015, up from 4% of households reporting in 2Q 2015 that they cancelled the service in the past 12 months.