Advanced Television

Less than third of teens would pay for content

June 22, 2016

Amdocs, a provider of customer experience solutions, has announced the results of a global study into the digital DNA, behaviour and expectations of today’s teenagers (aged 15-18 years old). The study reveals a fragile relationship between communications service providers (CSPs) and teens, and the role digital technology will play in the lives of a generation who see their future as digital beings as much as human beings.

According to the study, only 12 per cent of teenagers feel service providers understand their lifestyle and offer services to match it. 30 per cent report experiencing bad customer service from their CSP over the past year, and 46 per cent say they will not use that CSP again. A third of respondents then shared this information with families and friends.

The study, commissioned by Amdocs, was conducted by Vanson Bourne, a technology market researcher provider, and advised by leading generational expert and sociologist Dr. Paul Redmond.

Additional key findings unveiling teens’ unique digital DNA and what services they want:

  • Digital is the lens through which teens view themselves and others: 43 per cent believe their smartphone makes them smarter and “cooler”; 52 per cent check their social media accounts first thing in the morning; over 30 per cent say they would probably not meet someone again if they lacked a Facebook or WhatsApp account.
  • Emojis are worth a thousand words: Almost half of respondents say they prefer using emojis (47 per cent) and posting photos (45 per cent) to sending emails as emojis express how they feel more clearly than words.
  • Internet connectivity is teens’ most vital sixth sense: Teens require constant Internet connectivity, with respondents saying they are more likely to feel anxious and alone if separated from the Internet (56 per cent) than when separated from their family (52 per cent). The value of Internet access is so significant that the majority (55 per cent) strongly believe fast Internet access to be a human right.
  • Free content streaming is a way of life: A majority stream movies (53 per cent streaming; 17 per cent downloading), TV (51 per cent versus 11 per cent) and music (47 per cent versus 29 per cent); and they are typically doing so for free with less than a third saying they ever pay for any content.
  • Teens perceive content and app providers as “service providers” and love them more: Although 82 percent know who their service provider is, they perceive OTT players and internet giants, including Google (51 per cent), Facebook (38 per cent), WhatsApp (42 per cent) and Apple (38 per cent) as CSPs, when they are not. However, when asked which companies they love, teens rank Google first at 60 per cent (Facebook: 48 percent; WhatsApp: 42 percent) while only 36 per cent said they loved their CSP.
  • Teens want technology to allow them to design their own experiences: 54 per cent want interactive services that offer design options they can play with; 59 per cent expect to be offered 3D printing technology to create their tech accessories and 55 per cent expect to be able to visit new countries using virtual reality. Teenagers’ connection to technology is so strong that 66 per cent say they would want to be Bill Gates when they grow up, more than a YouTube star (50 per cent) or a pop star (38 per cent).
  • Teens expect future technology to allow them to become digital beings as much as human beings: 78 per cent would like to have an Internet-connected device embedded in their arm, with 38 per cent seeing it replacing their smartphone; 66 per cent believe many jobs will be taken by robots, 24 per cent even believe a robot will become their best friend.

“It’s fascinating how ‘digital’ is defining how teens are viewing both themselves and others, how they express themselves, how they learn,” said Dr. Paul Redmond. “They require constant access and connectivity, and consume content differently than older generations. This is a ‘free content’ generation who love streaming and have no need for ownership, calling upon service providers to look into new business models that can improve teen affinity to their brands.”

“It’s striking that half of teens today already have a firm opinion as to which service provider they will not use once they have to start paying their own bills,” said Chris Williams, head of global marketing for Amdocs. “But we cannot disregard the immediate teen impact on a service provider’s business and brand perception given their influence on paying parents and wide reaching audiences through their prolific use of social media. With digital so integral to teen life the need to transition to a digital service provider is immediate.  Service providers must act now to establish and build teen affinity, adopting a multi-channel engagement strategy and exploring new monetization models to address the demand for free content. Whether or not service providers will succeed in this will determine their ability to remain central and relevant in future societies and economies.”

Categories: App, Articles, Companion devices, Consumer Behaviour, Content, Mobile, OTT, OTT, Research, Social Media