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OTT Growth Isn’t All About Millennials

Mar 7, 2018

Millions of consumers are cutting the cord in favor of over-the-top television services, like Hulu, Netflix and Amazon Video.

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Millions of consumers are cutting the cord in favor of over-the-top television services, like Hulu, Netflix and Amazon Video. Not surprisingly, cable and satellite providers have taken notice of this OTT growth. Recently, Charline Ergen, CEO of Dish, acknowledged that we’ve hit a tipping point. As part of her 2017 Q4 earnings announcement, Ergen commented: “OTT services are becoming a direct replacement for cable and satellite”.

You might think OTT growth is being driven primarily by Millennials, but the data may surprise you.

If you think OTT growth is all about Millennials, think again

It’s true that Millennials were among the first to cut the cord and embrace OTT. But now, thanks to increased ease of access, all generations are welcoming OTT into their homes. GfK MRI’s latest “Cord Evolution” study looked at the streaming attitudes and behaviors of 10,000 people across the United States. Here’s what they found:

Historically, the largest traditional TV viewership has been among adults, aged 50-64. But research shows that in Q1 2017 – for the first time – traditional TV viewing has declined among that same age group. Here’s what Nielsen’s data shows:

These numbers are noteworthy to players in the online video sector who have been primarily targeting Millennials. Online video providers and vendors, if they’re smart, will expand their campaigns to target older users, running videos on their TVs as well as other connected devices.

OTT is redefining the concept of “TV”

What’s perhaps the most interesting about OTT is how it’s changing the definition of “television” itself:

OTT growth isn’t exclusive to the U.S.

S&P Global Market Intelligence recently conducted a consumer insight survey and found that about 11% of all U.S. households have cut the cord. But this percentage is bested by a number of countries. In Italy and the UK, 13% of households have cut the cord. In South Korea, 12%, and in China, 15%. In China, the highest percentage of cord cutters are younger, yet in Europe, older consumers are cutting the cord in favor of OTT.

OTT is expanding beyond the world of entertainment and sports

The entertainment, news and sports industries have most openly embraced OTT. But corporations, government agencies and associations are also starting to take advantage of this new platform as well. In 1993, cable magnate, John Malone, famously forecasted that there would be 500 channels of cable. He was right, with one exception: with OTT, there are no limits to the number of channels.

If you’re looking to launch an OTT channel, Broadcast Management Group can help. Contact us today to discuss your next OTT project.

Courtesy of: Aria Systems
No Comments
  • Andrew Ryback Reply
    2018-03-07 21:55:41

    We're glad you found this to be useful, Margaux. Let us know if there's anything we can help with.

  • Margaux Ford Reply
    2018-03-07 05:57:06

    I appreciate the tips on hiring a production staffing company to have more time to focus on the creative aspects of the project. Hiring a production crew is a tedious task, and can take up much of your time. We're currently working on a huge production, and I'll share this article with my boss so he'll consider on delegating the recruitment to a staffing company. I like that you mentioned that staffing company can ensure to have the right team onboard for the project. Thanks!

  • Robert McWilliams Reply
    2017-10-31 19:05:18

    Todd:I have an ad agency in addition to our production company. We put one of our clients on OTT two months ago up in Nevada. Seems to be working!Thanks again for the work earlier this month.Rob

  • Nicole Rohde Reply
    2017-05-27 22:28:45

    Hey Andrew, Any word as to whether or not the Jokers will be back for Comic Con this year? Please let me know. Thanks!!!

  • Aaron Estabrook Reply
    2017-02-23 16:26:57

    I'll be tuning in for sure!

  • David Patton Reply
    2015-01-16 13:16:02

    Interesting blog post Andrew. For those who are nearly ready to cut the cord, but still want access to key channels such as ESPN, I'd recommend checking out Dish Network's new service, Sling TV. It provides access to a handful of channels for $20/month.https://gigaom.com/2015/01/15/sling-tv-details-price-devices-networks-resolution-bandwidth/

  • Andrew Ryback Reply
    2015-01-13 14:44:19

    Go for it! I'll admit that I was a little apprehensive about pulling the plug at first, but honestly, the transition away from DirecTV has been seamless. The only missing link is live sports, but there are a few work arounds depending on what sports you watch. Good luck!

  • Gregory Hart Reply
    2015-01-13 06:35:00

    While I am part of the 55 year old demographic that still has TV boxes and does TV viewing, I do my viewing using DVRs and networked PCs playing video files from an in-home server. I too have noticed that I view a handful of shows on a regular basis and have found various other sources for these shows. And now it has gotten to the point to where I am seriously considering ending my very long relationship with DirecTV and going streaming. Working in the TV industry also helped to open eyes to this as well. This transition from "old" TV is coming and the networks (Les Moonves, I am looking at you!) had better plan for it.

  • Gary Reply
    2013-08-08 09:44:39

    You've left out a HUGE part of this story by not mentioning Howard Stern's effect on the Sharknado buzz! #siris-ly

  • Marybeth Harrison Reply
    2013-08-07 14:46:29

    I can almost hear the theme song from Jaws as I read your post!