Millennials increasingly abandoning pay-TV
June 12, 2013
Pivot, Participant Media’s new cable network, has released its first annual Industry Report about millennials’ (18-34 year olds) consumption of TV content. The study examined how the current Pay TV ecosystem could be impacted if programmers and MVPDs provided consumers with a new distribution alternative that speaks specifically to this demographics lifestyle and viewing habits.
Evan Shapiro, President of Pivot and Participant Television, who unveiled the data during The Cable Show in Washington, D.C. said: “Our goal with this study was to start a conversation about attracting a new generation of MVPD customers. The future of our industry isn’t just about staving off decline, but growing the video business by showing the 100 million plus audience under 30 that our products can fit their media lifestyle.” Shapiro added: “The data clearly shows that a bundled next-gen TVE offering – with both LIVE streamed channels plus VoD TV content, anywhere/anytime – would be a Killer App for keeping many millennials at risk of leaving our ecosystem and wooing those college kids and recent grads we’re now losing.”
The report found that 13 per cent of 18-34 year olds (8.6 million) who already have broadband service are committed to a broadband-only existence, a much higher percentage than in previous reports. In addition, many Cross-Platformers are looking to stray from the ecosystem (17.9 million 18-34s as well as 32 million 18-49s). However, data indicates that both groups can be attracted to TV through new offerings. 87 per cent of at-risk Cross-Platformers (aka “Strayers”) would consider keeping their pay-TV Subscriptions if offered programming streamed live and on-demand anywhere/everywhere, while 58 per cent of Broadbanders would consider subscribing to TV for a bundle of networks from their broadband provider, streamed live and on-demand.
Robert Miner, President, Miner & Co. Studio, said: “Research indicates that offering customers bundles of services including VoD and live streaming where they want, when they want, and at a price point that is acceptable to their life stage could keep a number of Cross-Platformers at the table with the potential of bringing Broadbanders into the fold.”
Data shows that if offered channels that streamed not just VoD content but live programming anywhere/anytime, 85 per cent of Cross-Platformers ages 18-34 noted they would feel better about MVPDs. Among 18-34 year olds, 51 per cent of Broadbanders say they would consider paying as much as $20 per month for such a bundle.
Ramspacher offered: “It is clear from our study that the industry at large could make a substantial dent in the attrition of pay-TV subscribers by offering VoD and live streaming products that would retain and attract this specific group of video customers.”
Additional results below for 18-34 year olds:
· 92 per cent want VoD streamed everywhere and anywhere
· 86 per cent want live streaming TV everywhere
· 94 per cent would feel more positively about networks that offer VoD streamed everywhere
· 91 per cent would feel more positively about networks that offer live streaming TV everywhere
· 89 per cent of Cross-Platformers are more likely to keep their cable, satellite, or telco TV subscription if they were offered TV networks/channels that provided VoD streamed everywhere
· 85 per cent of Cross-Platformers are more likely to keep their cable, satellite, or telco TV subscription if they were offered TV networks/channels that provided live streaming TV everywhere
· 87 per cent of at-risk Cross-Platformers (aka “Strayers”) would consider keeping their pay-TV subscriptions if offered programming streamed live and on-demand anywhere/everywhere
· 55 per cent of Loyal Cross-Platformers intend to keep pay-TV primarily because they like the option of watching live TV
· 44 per cent of Pay-TV-Craving Broadbanders miss their favorite Live shows, while only 19 per cent say they miss live sports
· 31 per cent of Pay-TV-Craving Broadbanders miss watching live TV as an option
· 58 per cent of Broadbanders say they are likely to subscribe to a bundle of TV networks from their ISP if offered
· 51 per cent of Broadbanders and 85 per cent of potentially straying Cross-Platformers say they would consider paying as much as $20 per month for such a bundle