Monday, July 9, 2018

Millennials Favor Netflix, OTT, Not Demo-Targeted Services

COMMENTARY

Looking for the next MTV in the new digital video world? Digital video for young millennials could be YouTube, or other easy-to-access, ad-supported digital video platforms.
Apparently, that is not totally the case.
According to one survey, Netflix is the choice place for video for millennials. (And it's also a choice for older TV viewers as well.)
This isn’t the mid-1990s. Perhaps audience segmentation into different networks -- or separately branded, over-the-top digital video platforms  -- is an old thing.
A survey of 2,500 people from Cowen & Co., an investment management company, says that almost 40% of respondents, ages 18-24, used Netflix most often to view video content. YouTube was next at 17%; basic ad-supported cable around 13% (Hello, MTV!); Hulu, 7.6%; and broadcast TV, 7.5%.
Those surveyed answering this question: “Which platforms do you use most often to view video content on TV?”
Looking at all respondents, Netflix was still on top at 27%. Basic cable was next at 20%, followed by broadcast at 18%; and YouTube at 11%.
Cowen’s results may not mean much to TV analysts. Longtime TV research data -- especially data from Nielsen -- would point to many individual broadcast networks taking top positions.
Still, some of this data may suggest how young millennials respond to specific media and video brands -- especially those looking to target them.
Remember FullScreen? It was a new OTT that specifically targeted young Netflix-leaning viewers. The joint venture between AT&T and the Chernin Group -- launched in the spring of 2016 -- closed down barely a year and half later, in November 2017.
FullScreen tried to attack its rival on price. Where Netflix charges round $11 to $12 per month. FullScreen charged at $4.99/month.
NBCUniversal's Seeso -- a comedy-based OTT with NBC “Saturday Night Live” and other young-comedy content -- also made a push. It started in January 2016 and closed in November 2017. It also was modestly priced.
So what is the secret? Netflix doesn’t specifically target young viewers; and neither does YouTube or Hulu.
Maybe the best big video OTT brands have under-the-radar, audience-segmented strategies. Of course, many would say that all digital media is primarily for young millennials these days. That could be the real answer.

No comments: