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One-Quarter of Millennial-Led Households Are OTT-Only: Parks

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In a troubling sign for the pay TV industry, research from Parks Associates shows that 23 percent of millennial-led households are OTT-only. The U.S. average is 15 percent for broadband-enabled homes, so this shows a willingness by young adults to cut the cord—or never sign up in the first place.

Further, 61 percent of millennials subscribe to both pay TV and OTT services, which is higher than the national average of 52 percent. According to Park research analyst Ruby-Ren Bond, young adults have a higher-than-average appreciation for popular culture, premium movie channels, and children's programming.

Looking at the OTT market, Parks says that 60 percent of OTT video services require a subscription, and 64 percent of broadband-enabled U.S. households subscribe to an OTT video service (up from 59 percent last year).

Churn is high with subscription services: Roughly 20 percent of U.S. broadband-enabled homes cancelled at least one OTT video service last year.

Looking at how people access that video, Parks found that viewers don't stream as much video over gaming consoles as they used to.

“Gaming consoles were once the dominant platform for accessing online content, but today, only 32 percent of U.S. broadband households with at least one internet-connected CE device use their gaming console as their primary platform,” says Barbara Kraus, director of Research at Parks. “Gaming consoles are still in the lead, but smart TVs are a close second at 28 percent, with streaming media players third at 26 percent.” 

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