Report: Younger Consumers Avoid Pay-TV17 Aug, 2013 By: Chris Tribbey
Young adults first moving out on their own are less likely to subscribe to a legacy pay-TV service, such as cable or satellite, turning instead to online services like Netflix or Hulu Plus, according to a new report.
Nearly 49% of young adults surveyed by research firm The Diffusion Group (TDG) said they were highly inclined to subscribe to an online video service, compared to just over 31% who said they were highly inclined to subscribe to a traditional pay-TV service. Nearly 25% said they were highly disinclined to subscribe to a traditional pay-TV service.
“Much has been said about younger adults and the choices they may make about their home TV services once they leave their parents' home,” said Michael Greeson, president and principal analyst for TDG. “While this data can be spun to rationalize a number of arguments, the simplest insight may be the most profound. 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.”