Today’s online TV users are mostly from the younger generations, with 28 percent being from ages 25 to 34 . Their reasons for signing up for streaming video services are clear – content, cost, and convenience are of high importance to these consumers. Cost seems to be the single most important factor in people’s decision, with 62% of consumers who cancel their subscription stating that the price became too expensive. In general, consumers seem to think very positively of streaming services, but around 64 percent state that they wish all shows and streaming content was provided by one streaming service.
Although online TV formats are gaining more and more enthusiasts, traditional TV has also experienced a small upturn in recent years. In the 2018/19 season, the number of TV households is due to increase to almost 120 million, following the slump to 114.2 million in the 2012/13 season. There is nevertheless a new phenomenon of cord-cutting developing which is seeing people turn to alternative methods to catch up with their favorite shows. There were an estimated 27.1 million cord cutters in the United States in 2018, a figure which is projected to reach over 40 million by 2021. Additionally, there were 36.3 million "cord never" consumers in 2018, meaning those who had never paid for a pay TV services. This number is also forecast to increase to 41 million by 2021.
Some of the key players in the VoD industry are Netflix, Hulu, and Amazon Prime, all of which offer their own original series, as well as old favorites. Speed of service plays a major role among consumers, who identified free 2-day shipping as the main reason for joining Amazon Prime. Fifteen percent signed up because of the unlimited instant streaming of movies and shows. All things considered, the on-demand model of video consumption is constantly developing and this is illustrated by the growing number of subscribers.