TV Everywhere (TVE) offers pay-TV service providers the means to stem the cord-cutting tide and bring viewers in the all important Millennial demographic into the pay-TV fold, according to new market research carried out by strategy consultants Altman Vilandrie & Co. for multi-platform entertainment provider EPIX.
Now around 17 percent, the percentage of U.S. TV households that don’t subscribe to a pay-TV service continues to rise, EPIX pointed out in a press release. Millennials (18-34), as it turns out, are much less likely to subscribe to a pay-TV service than other U.S. demographic segments.
Millennial Cord Cutting
More than 7 in 10 Millennials (72 percent) subscribe to pay-TV services. That rises to well over 8 in 10 (86 percent) for those over 35 living in TV households, however. Furthermore, although Millennials represent 20 percent of pay-TV subscribers, they make up 37 percent of consumers who have either ¨cut the cord¨ on their pay-TV services or have never subscribed.
Altman Vilandrie and EPIX found that TVE affords pay-TV providers an effective means of keeping Millennials satisfied and thereby avoid ¨cord-cutting,¨ as well as a way for the providers to attract new subscribers in the demographic.
Significantly, according to the research report, younger Millennials who are aware that their pay-TV provider offers TVE are 23 percent less likely to seek out TV alternatives or switch providers. More than half (55 percent) of younger and nearly half (48 percent) of older Millennials said they would use TVE once a month or more if their provider offered it, EPIX highlighted.
In addition, over half (54 percent) of young and nearly half (47 percent) of older Millennials who don’t subscribe to a multi-channel video service said they would be more likely to consider subscribing to a pay-TV service provider that distributed video to viewing devices other than TV sets.
Millennials’ greater penchant for mobile viewing has been well documented, i.e. Americans ages 18-34 tend to watch more video on mobile devices and do so with greater frequency than do Americans in other age groups.
According to EPIX, nearly half (46 percent) of Millennials reported using their smartphones and/or tablets to watch movies or TV shows at least once a week. That compared to 38 percent for all mobile device owners.
TV Everywhere Awareness
The problem for pay-TV providers is that consumer awareness of TVE apps that deliver pay-TV content to mobile device screens remains low. Furthermore, this is the case no matter the age demographic. Whether a Millennial or older, consumer awareness of TVE’s ability to deliver video to mobile screens holds at around 36 percent, EPIX pointed out.
Among young Millennials (18-24) aware of TVE 7 in 10 said they use it monthly. That’s substantially higher than the corresponding percentages for older Millennials (57 percent) and all multi-channel video subscribers aware of TVE (43 percent).
“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,” Altman Vilandrie director and research leader Jonathan Hurd was quoted as saying. “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.”
A joint venture established by Viacom, its Paramount Pictures subsidiary, Lionsgate and MGM, EPIX noted that at 61 percent (70 percent above the national average), subscribers to its premium, multi-platform video service are much more aware of TVE. More broadly, it has been found that those aware of TVE are more likely to say they will definitely or probably not cut the cord on their pay-TV subscriptions in the next six months in comparison with those who are unaware of TVE (81 vs. 72 percent).
“From the beginning, TV Everywhere has been a core pillar of our business, knowing consumers want to watch content when they want, where they want and how they want,” said Mark Greenberg, EPIX president and CEO. “We’re excited that the findings of this study highlight how important TVE offerings are to the pay TV landscape in maintaining subscribers and growing viewership.”