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tdg-svod-relevance-millennial-cord-nevers-sept2016Research has shown several times that subscription video-on-demand (SVOD) services tend to act as a complement to – rather than a replacement for – pay-TV. However, with a sizable share of Millennials identifying as cord-nevers (having never subscribed to pay-TV), new research from The Diffusion Group (TDG) finds that SVOD services are indeed having an impact.

In its survey of 999 Millennial (20-35) cord-nevers, TDG found around 3 in 4 saying that being “fine with subscription services like Netflix or Hulu” was relevant in their decision to forego legacy pay-TV. In fact, respondents were about 7 times more likely to say that these services were “extremely relevant” (49.2%) than of no relevance (6.8%) at all in their legacy pay-TV decision.

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Separately, results from the study indicate that about 81% of Millennial cord-nevers use SVOD services. Among these, more than 9 in 10 feel that those services are enough to meet their video needs.

Recent research from Nielsen indicates that streaming video services hit a new milestone in Q1 2016, reaching half of US households, on par with DVR penetration.

About the Data: The results are based on a TDG survey of almost 1,000 adult broadband users in the US aged 20-35 who have never subscribed to pay-TV.

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