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Report: Pay-TV Remains Resilient

20 Jan, 2014 By: Chris Tribbey

Nearly nine in 10 adult broadband users also subscribe to a pay-TV service, with the greatest usage among adults 35 and older, according to a new report.

The Diffusion Group report found that the pay-TV subscription rates among early Millennials (ages 25 to 34) was 82%, compared with 85% for late Millennials (ages 18 to 24).

“The notion that we're on the edge of a ‘mass exodus’ from incumbent pay-TV services to online substitutes is not supported by the data,” said Michael Greeson, co-founder of TDG and director of research. “Today, 88% of adult broadband users subscribe to an incumbent pay-TV service, a rate that has held relatively steady for the last 12 months.”

Millennials are more likely to go online for their content, leading to lower traditional pay-TV subscriber rates for that segment, Greeson added.

“That said, until a legitimate virtual operator emerges capable of offering a competitive alternative to traditional pay-TV services, most Millennials will continue to subscribe to a legacy service,” he said.

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