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Millennials forego pay-TV for SVoD

According to research from The Diffusion Group, a majority of Millennial Cord-Nevers – adult broadband users between the ages of 20 and 35 that have never signed up for a legacy pay-TV service – perceive subscription streaming services such as Netflix and Hulu satisfy their video needs. Consequently, they feel little need for a traditional cable, satellite, or telco-TV service.

According to TDG’s latest research, three-quarters of MCNs believe SVoD services play a key role in their decision to forego legacy pay-TV (answering ‘5’ or greater on a 7-point scale). Importantly, two-thirds of MCNs rank this factor as very relevant (‘6’ or greater) in this decision, with half ranking it as extremely relevant (‘7’).

“The choice to live without legacy pay-TV is undoubtedly multi-dimensional,” argues Michael Greeson, TDG’s Director of Research. “High costs, poor value, and the availability of substitutes all play a role in this decision. Yet while cost of service has long been the dominant factor driving MCNs, the availability and sufficiency of SVoD now ranks as equally important.”

The second part of this equation is especially important. Greeson notes that, of the 81 per cent of MCNs that use SVoD, more than nine in ten believe the services are sufficient to meet their video needs.

In Q2 2016, TDG surveyed nearly 1,000 US Millennial Cord-Nevers regarding their motivations for eschewing legacy pay-TV, as well as their viewing behaviour across services and screens, and their interest in various channel bundles at different price points.

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