MUST CHOOSE TV:
What Gen Y thinks about Pay TV and Cord Cutting
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Many perspectives have hit the streets recently on “cord cutting” – canceling cable or satellite television subscription, presumably in favor of consuming video entertainment via alternative means. It is undeniable that this phenomenon is occurring, but how widespread is it? What is driving it? Is all this merely driven by a down economy – or does it reflect an emerging, possibly permanent, alternative to traditional subscription-based pay TV?
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In an integrated qualitative and quantitative study, 500 Gen Y (18-29 years old) pay-TV subscribers were segmented into three groups – “Loyalists,” “Leaners,” and “At-Risk” – characterized by distinct demographics, media behaviors, and attitudes. We found that approximately 40% of this highly-influential age group are unlikely to cut their pay-TV service, and 60% are either leaning toward or seriously considering “cutting the cord.”
IDEAS & SOLUTIONS!
Ideas & Solutions! is a Los Angeles-based consultancy that specializes in guiding media and technology companies in a rapidly changing business landscape; most recently it has provided expertise on mobile video and the new frontier of Over the Top Television. The company offers objective analysis as well as actionable plans and programs to clients while working closely with leading research, marketing and communications firms.
Recognized as a Cable Pioneer, Founder and President Glen L. Friedman has been on the front lines of major media change for over 25 years. He was a key architect in the launch strategy for DIRECTV, worked closely with XM Satellite Radio from its inception and was actively involved in the launch of high-speed Internet services.
Media enterprises seeking to capture and maintain the Gen Y audience must understand their behaviors, develop relevant marketing messages, and consider product offerings tailored to their needs. Whether you are a pay TV provider looking for perspectives on protecting your current customer base, or a media company seeking to maximize your reach to target audiences, this study is an invaluable tool for devising effective marketing plans.
- Full Comprehensive Report, including a top line executive summary, in-depth analysis and integrated graphics
- Additional Executive Presentation and Q&A Session Available
Study categories include:
Gen Y members are generally fluent with new technologies and services. They are often influential new media and device adopters, exhibiting a "real-time reflex," that includes the need for instant access to the latest information / entertainment, as well as an associated "fear of missing out."
Current pay-TV subscribers in the Gen-Y age group can be segmented by the degree of loyalty to that service, with each segment characterized by distinct demographics, media behaviors and attitudes.
For those who have already cut the cord on pay-TV service, or are considering doing so, a combination of Netflix and Hulu – supplemented by TV network websites and digital antenna – provides a low-cost alternative with a sufficient suite of content offerings.
Cost is an essential element of the decision to cut, especially when many find limited value in the benefits of pay TV offerings relative to the alternatives available.
Understanding this dynamic market in depth, and on an ongoing basis,is vital. Marketing communications must be tailored by segment, and delivered via relevant media. Maximizing exposure while ensuring that core businesses remain strong will require careful analysis of platforms and customers, and flexible contracting. Tailored product and price offerings that address the needs of this group should be carefully considered as well
info@ideasolutions.com or 310.286.1006