New Research: Younger Consumers Less Likely to Subscribe to Pay-TV Services – Managerial Implications

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Late Millennials living at home with their parents are, once they move out on their own, more likely to subscribe to an online pay-TV service like Netflix or Hulu Plus than a legacy pay-TV service such as cable or satellite. Such dispositions could change over time if such TV services are unable to acquire the content these consumers will want as they marry, have children, and move up the career ladder. In the end, it will still be about the content and value of the service provided.

This data is drawn from TDG’s latest multi-client primary research project, Late Millennials: A Study in Media Behavior (http://tdgresearch.com/late-millenials-a-study-in-media-behavior/).

Managerial implications:

The very fact that young consumers perceive online video services as somehow more desirable or necessary than incumbent pay-TV services says volumes about the future of video. The fragmentation of consumers posts an increasing challenge for marketers to reach out to them.

How will ad spend be like 10 years from now? There will be smaller segmentation sizes of people and more groups. Searching costs are bound to surge and this is where value added services of finding such groups come in handy.

J.CJ

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