Those Damned Kids Will Choose Netflix Over Pay-TV
Today in news about the death of television, young people are less likely to subscribe to traditional pay-TV services than they are to online video subscription services. This is according to new research from The Diffusion Group, which finds that 48.7% of “Late Millennials” (adult broadband users between the ages of 18 and 24) still living at home with their parents are “highly inclined” to subscribe to OTT services like Netflix when they finally move out. In comparison, only 31.3% of this group feels the same way about a traditional “cable-like” subscription TV service once they are living on their own.
“While this data can be spun to rationalize a number of arguments, the simplest insight may be the most profound,” says Michael Greeson, president and principal analyst at TDG, in a statement. “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.”
Greeson hedges a little by saying these opinions could change “over time” if OTT services are unable to offer the content that people want to watch. So I guess, unless Netflix plans to dramatically change everything it has been doing, it’s got a bright future. But you already knew that.Tags: Netflix, OTT services, pay tv, Research, The Diffusion Group