‍In Q2 2024, strong QoQ growth in household penetration among 55+ households lifted the average for all households. The 55+ age cohort among households remains the least likely age group to subscribe to a streaming service by far but that situation is changing. This age group is the strongest avenue of potential growth for the streaming industry and the last bastion of loyalty for the Pay TV industry. A focus on appropriate content and experience for each age sub-group with consideration for their stage of life, life-style, needs and concerns can extend the growth streak into the rest of 2024.

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Presented at CTAM Think, Nov. 7, 2024 by HarrisX.

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A recent Wall Street Journal article says it all. The title is “We’re Not Dead Yet’. Baby Boomers’ Good Times Drive the Economy, July 6, 2024. The WSJ article talks about cities trying to attract young families and hip remote workers to rejuvenate their communities. But in fact, it was boomers moving into a planned community in TX who revived the local economy by driving population growth, indulging in sky-diving, concerts, classic cars and ‘having more fun than our daughter.’

It isn’t just cities - content and advertising are generally aimed at younger demographics. Older protagonists take centerstage very rarely in TV shows - The Golden Girls comes to mind, then 30 years later the ‘The Golden Bachelor” last year on Netflix. Apparently, entering one’s golden years can turn you invisible to content providers and advertisers. This situation can be rectified and the rejuvenation powers of the golden ages unleashed for further growth in streaming household penetration.

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It’s not just American seniors who are golden. The past few years have ushered in a golden era of streaming for all households with rising numbers of subscribers and services. But household penetration has stagnated at under 85% in recent times, despite the uptick in Q2 2024. One would assume this rate of household penetration is high enough and that the golden age of growth in streaming is over.

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At just under 85% household penetration, the overall untapped market of households who do not stream is at 15% of all households, down from 16% in Q1 2024. But digging deeper, we see that untapped households with decision makers aged 55 and below are < 10%. Compare that to a whopping 25% of households with 56+ decision makers who do not subscribe to a streaming service and you can see where we’re going with this. It is also among these households that streaming made the biggest inroads between Q1 and Q2 2024, with a 2pt drop from 27%, a change that we do not see among the other age groups.

If we factor in the dominant share of household decision makers above the age of 56, we see that 80% of untapped households today are 56+. These household decision makers are directing or influencing purchasing decisions not just for themselves but for their children, grand-children and older parents. The 37-55 age cohort is next with 15%, with the younger age groups barely registering.  

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If expanding the streaming market is still the objective, better to re-focus attention on the older age cohorts and target the folks in charge of households.  

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Even within the huge 55+ age cohort, there are huge differences in attitudes to streaming and contribution to QoQ growth

Within the 65+ age group, it’s the 65-74 age group that contributed a huge 4pt jump in household penetration between Q1 and Q2 2024, while the 75+ age group remains the furthest behind. Clearly, a deeper dive into each of these sub-groups will reveal a lot more about their needs, concerns and potential for further growth.

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What may be driving these huge differences in streaming adoption among the various sub-groups within 56+? One of the factors is of course their use and subscription of Pay TV which remains much higher than younger age cohorts.  

Even as the older age groups continue to cut the cord, the 55 – 64 age group TV penetration actually rose between Q1 and Q2 2024. Once again, it proves that each age group brings its own needs, attitudes and trajectory to both the streaming and Pay TV markets.  

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The 56+ age group can make ideal customers

Once signed up, they are more loyal to their providers and more can afford higher prices. About 44% of households with $100K income or higher are in the age group of 56+ compared with 17% of 25–36-year-olds and even fewer 18-24 year olds.

It’s not all about Gen Z: the major untapped opportunity in streaming (or Pay TV or even growth in any kind of content offer) lies in the 56+ year old cohort, as almost everyone below the age of 55 is already tapped. Moreover, this age cohort is by far most likely to make household subscription and spending decisions.  

Decisions about streaming services are also connected to other technology and brand purchase decisions such as mobile devices, internet/mobile services, and consumer electronics.  HarrisX has the insights and research that can make sure you are the first player to capture this valuable target.

Questions that HarrisX can answer -  

• What are the content needs of these older households? How much time do they spend watching TV or other video content? What about social media apps? How many streaming services do they subscribe to vs younger generations? What genres are popular amongst them?  

• Are they likely to keep cutting their Pay TV subscription in favor of streaming? Or are they likely to keep both?  

• Is their Streaming/ TV mix a function of their tech savviness? Is this something HarrisX can help me forecast?  

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Want more information? Contact us below.

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