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Parks: 23% of US millennials opt for OTT-only

Parks-Associates--US-Pay-TV-and-OTT-PenetrationIn the US, some 23% of millennial heads of household opt to live in OTT-only, broadband homes, according to Parks Associates.

The research firm said the figure compares to a national average of just 15% of all broadband households that only choose over-the-top entertainment access.

However, the study also notes that 61% of millennials subscribe to both pay TV and OTT services – also higher than the national average of 52%.

Parks claims that there are now 130 active OTT services operating in the North American market and that nearly 60% of these are subscription-based.

Overall, 64% of US broadband households were found to subscribe to an OTT video service, up from 59% in 2015. However, last year some 20% of broadband homes also cancelled at least one OTT service.

The average monthly spend on internet-based SVOD services among US broadband homes last year was US$6.19 per month, up from US$3.71 per month in 2012, according to Parks.

Separately the research firm said that 26% of US internet-connected device owners now use their streaming media player as their primary devices to access online video content.

“Gaming consoles were once the dominant platform for accessing online content, but today, only 32% of US broadband households with at least one internet-connected CE device use their gaming console as their primary platform,” said Parks Associates director of research, Barbara Kraus.

“Gaming consoles are still in the lead, but smart TVs are a close second at 28%, with streaming media players third at 26%. However, broadband households will not purchase a gaming console just for streaming, so the future lies in new uses for consoles such as virtual reality.”