Report: Millennials are Abandoning the Pay-TV Ecosystem

NEW YORK: Participant Media’s new cable network, Pivot, has released a study indicating that a rising percentage of 18-to-34-year-olds have become so-called "broadbanders," also known as cord-cutters or cord-nevers, who are "abandoning" the traditional pay-TV system in favor of online content delivery systems.

Slated for an August 1 rollout in 40-million-plus U.S. homes, Pivot unveiled its first annual state of the industry study at the Cable Show this week. "Our goal with this study was to start a conversation about attracting a new generation of [pay-TV] customers," said Evan Shapiro, the president of Pivot and Participant Television. "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. 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 study, conducted by Miner & Co. Studio in association with Beagle Insight, looked at Broadbanders—those who do not currently subscribe to pay-TV services but have broadband/Internet access and watch TV programming—and Cross-Platformers, as in, those customers with both broadband and pay TV. Of 18-to-34-year-olds with broadband access, 13 percent, or 8.6 million, "are committed to a broadband-only existence." Meanwhile, 17.9 million Cross-Platformers in this demo are considering cancelling their pay-TV service. The majority of Cross-Platformers, 87 percent, would be compelled to retain a pay-TV subscription if offered programming streamed live and on demand anywhere/everywhere. Just over half, 58 percent, of Broadbanders would consider subscribing to TV for a bundle of networks from their broadband provider, streamed live and on demand.

Other key findings include that 92 percent of 18-to-34-year-olds want VOD streamed everywhere and anywhere and 86 percent want live streaming TV everywhere.

Robert Miner, president of Miner & Co. Studio, noted, "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."

Pivot’s model is to offer pay-TV subs live and on-demand access to the service on any device. Broadband-only subs can access the channel live and on demand through a subscription offering via the Pivot App.