Streaming continues to grow at rapid speeds, with Parks announcing the number of OTT subscriptions in the US will increase from nearly 230 million in 2021 to more than 277 million in 2026. That’s an increase of 20% in just five years.
While all demographics are using streaming services, there are different churn rates for young vs older viewers. Parks Associates’ research titled The Evolving Digital Media Landscape indicates that in Q1 2021, people hold onto an OTT subscription for an average of 2.5 years, with older viewers subscribing to less streaming services but keeping them longer. In contrast, younger viewers tend to hop around with lots of different subscriptions, but don’t stick with them as long.
What’s more, 80% of millennials and Gen Zers report watching video on multiple platforms, with mobile being the most popular device. By comparison, Gen X, Boomers, and older mainly stream video via their TV.
“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.”