Speaking at an event organised by his company Ampere Analysis this week, Richard Broughton (Executive Director) said that as it becomes harder for Netflix to grow, the SVOD provider is looking towards the 55-64 age group as a new opportunity. This demographic is now the core driver for growth at Netflix in the U.S. and UK, with the company growing subscribers in this range by around 250% in two-and-a-half years in the UK, and 1.5 times in the U.S. (The demo that performs best after this, in terms of growth, is 35-44 year-olds – over 1.3x in the U.S. in the same period, and approximately 2x in the UK).
“This has implications for Netflix’s content acquisition strategy,” Broughton added. “Youngsters consume different genres. They like comedy, action & adventure and sci-fi but, as a whole, they are less interested in drama, sport, crime and thrillers, which are the genres older viewers want more of.” A graph demonstrated the growing interest Netflix has shown in content that appeals to this older group.
One company that has been deliberately targeting an older demographic with its own SVOD offer (though not a direct-to-consumer one, or limited to streaming) is Cirkus TV, which has ITV as an investor. Mark Bradford, Managing Director at Cirkus TV, told the same Ampere Analysis event that traditional Pay TV providers have taken on their 60-80 title curated box-set offering, which covers ‘best of British’ drama and thrillers as a way to give high ARPU customers, especially 45-55 year-olds, more value for their Pay TV subscription.
Titles on Cirkus TV include Poldark (BBC) and Victoria (ITV). Streaming and download rights are included for the titles provided. Pay TV customers include Com Hem, DNA, Get, TeliaSonera and Vodafone Iceland. Cirkus has just signed its first Pay TV deal in Germany but the company has already entered this market with Amazon Channels.