Young Millennials (18-24) are nearly 25% less likely to churn providers or to look for pay-TV alternatives when they’re aware their pay-TV provider offers a TV Everywhere service, a new study reports.
And, says the study from Altman Vilandrie & Co., roughly half of all Millennials who do not have multichannel video service say they’d be more likely to consider subscribing to pay TV if they could watch content on devices other than their TVs.
“Young viewers tend to be mobile device viewers and the survey shows that the best way for pay-TV operators to capture and retain those consumers is through TV Everywhere,” said Jonathan Hurd, who led the survey. “However, providers need to do a much better job of promoting TV Everywhere and driving its usage or risk continued erosion of subscribers, especially Millennials.”
TV Everywhere has long suffered from lack of consumer awareness as providers have been reluctant – until recently -- to spend marketing dollars on it.
While more than 90% of all U.S. pay-TV subscribers have access to a TV Everywhere service, just more than one-third (36%) of subscribers are aware the service is available.
But, Hurd said, younger viewers who are aware of the service are likely to regularly use it.
For 18-24 year-old subscribers aware of TVE, 70% say they use the service monthly — more than the 57% of older Millennials and well above the 43% of all multichannel video subscribers aware of TV Everywhere.
Millennials in general are an at-risk group for service providers, representing just 20% of pay-TV subscribers but a more significant 37% of consumers who have either dropped their pay-TV subscription or never had one.
The survey also found – like other recent surveys -- that video viewing on mobile devices is particularly high among Millennials; almost half (46%) report using their smartphones and/or tablets to watch movies or TV shows at least weekly compared to 38% of all mobile device owners.
Other findings from the survey include:
- Multichannel video subscribers aware of TVE are much more likely to use their provider’s on-demand service weekly to watch movies (32% vs. 20%) and TV shows (44% vs. 27%) than those who are unaware.
- Among all weekly TVE users, Millennials are at least twice as likely as consumers over 35 to use TVE to view movies (38% vs. 16%), live TV shows (30% vs. 15%) pre-recorded TV shows (33% vs. 15%) and live sports (31% vs. 12%).
More than 3,400 U.S. consumers participated in the online survey.
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