Online video streaming is usually associated with hip young people. Typically, they spend their viewing time on internet sites or streaming services like Netflix and Hulu, while older generations are more likely to watch live television. This has been the trend for years, since digital video first became popular.
According to one analysis, though, that dynamic is starting to change.
Streaming’s Fastest-Growing Demographic
Older demographics typically watch more TV than younger ones. In the third quarter of 2016, the year-to-year percent change in time spent watching TV weekly decreased for nearly all other age groups.
In a recently published report, however, Barclays analyst Kannan Venkateshwar states that older viewers are starting to move towards online video consumption.
In fact, according to the report, adults over age 50 are the fastest growing demographic for over-the-top (OTT) services, another term for online video content. That demographic, a third of the population, accounts for half of all TV viewership, so this shift could have widespread effects across the industry.
The report cites ease of access as one possible reason for this surge in OTT use. The emergence of new streaming options, including some that more closely mimic the traditional TV experience, could also be a factor.
Widespread Adoption of OTT
Venkateshwar also expects overall online streaming to continue to grow. 54 percent of U.S. households now have access to on-demand video and 31 percent have two or more subscriptions.
This streaming trend doesn’t just apply to the U.S. A report by eMarketer predicts that by the end of 2017, 2.15 billion people worldwide will be digital video viewers. That’s 28 percent of the world’s population and 62 percent of the world’s internet users.
The report predicts that the online video audience will grow by 8.2 percent in 2017. If that prediction proves true, it will be the first year since 2013 that OTT growth will fall to single digits. This is likely because digital video has already spread through much of the market in first-world countries. Most of today’s growth is coming from countries where adoption is slower due to a lack of necessary infrastructure.
An increase in the number and quality of options for online video streaming is also contributing to its ever-growing popularity. As streaming services become more popular, they gain access to more content that people want to see and are now also producing many of their own, often very popular shows. Streaming is now a common option for live events, such as sports games, political events and awards shows.
Improvements in technology have also allowed for digital video’s growth. A 2016 report from Encoding.com indicated that faster internet speeds, more affordable data plans and enhanced cloud media processing have made it easier for more people to more easily access online video content.
Impacts on the Industry
As Venkateshwar points out, the growth in online video viewership by adults over age 50 will likely have significant impacts on the industry.
The demographic makes up a large part of TV viewership. If they move away from live TV, it could seriously disrupt the market. As streaming services begin to cater more towards this new audience, their services and business models may change. New services will also likely be launched, with the over-50 demographic in mind, as well as other groups.
The expansion of digital video into the over-50 demographic goes to show how widespread its use has become. People of all age groups and other demographics all over the world are beginning to use digital video streaming services. This shift will have far-reaching impacts on the television, OTT, media and internet technology industries.
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About the Author
Kayla Matthews is a tech-loving blogger who writes and edits ProductivityBytes.com. Follow her on Twitter to read all of her latest posts!
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