This week the research group Parks Associates released an updated look at the state of streaming video. According to the study, 85% of American millennials (people born between 1981 and 1996) now subscribe to a streaming service. That means more millennials subscribe to a streaming service than cable TV. Overall, 65% of American households subscribe to a streaming service.
The study also showed that 82% of subscribers stay with their service and don’t switch. Only 18% of subscribers switch their service once they subscribe.
“With OTT service penetration starting to plateau at around 65% adoption among U.S. broadband households, the OTT video market is reaching a level of saturation for the services currently available to consumers,” Sappington said. “In an increasingly crowded and competitive marketplace where subscriber acquisition costs are high, this plateau highlights the need for services to focus on retention rather than solely acquisition. Successful services can encourage retention in several ways, such as community building, continuously offering new and fresh content, and improving their user experience.”
According to the study, Netflix, Amazon, and Hulu have the most stability. With over 100 streaming services in the United States, this raises the question of how smaller services can best hold their own in a growing field of services.
How often do you change your streaming service subscriptions? Leave us a comment and let us know.
Did you know we now have a FREE app for iOS, Android, and Amazon Fire? Click HERE to download our app.