Baby Boomers comprise nearly a third of US adult broadband users and are significantly more likely than other segments to subscribe to traditional pay-TV. According to Broadband Boomers: A Consumer Snapshot, TDG’s newest data-driven analysis of this vital but oft-overlooked consumer segment, this makes them excellent candidates for the high-revenue sales of operator value-added services.
As TDG first noted earlier this year, the race-to-the-bottom that currently defines operator strategy – that is, the targeting of Millennials with ever-more ‘skinny bundles’ – has drawn energy and resources away from efforts to grow ARPU among Broadband Boomers.
“Unlike Millennials, Broadband Boomers are quite loyal to their current operators and have very deep pockets,” says Nick Beyer, TDG analyst and author of the new report. “Yes, they are less tech-savvy than younger consumers, but they are increasingly connected. The question, then, is how operators can better tap into the specific needs of this segment.”
“TDG’s research indicates that 57 per cent of Broadband Boomers have a net-connected TV,” notes Michael Greeson, President of TDG. “As well, time spent viewing TV streaming is increasing among this segment. Among smart TV users, 59 per cent report an increase in TV streaming over the last year. The same holds for all streaming devices used by this segment.”
That’s good news for OTT TV service providers, who have plenty of headroom among this segment. Uptake of Netflix among this segment, for example, is only 36 per cent, meaning close to 40 per cent of those with connected TVs have yet to subscribe to the service.