Cost Drives Cord-Cutting; Content Dulls The Knife

June 25, 2013

This article is included in these additional categories:

Broadcast & Cable | Television | Youth & Gen X

pivot-Attitudes-to-Pay-TV-Subscriptions-June2013A recent study [pdf] commissioned by pivot concerning Millennial’s consumption of TV content suggests that viewers stick with pay-TV or considering returning to a subscription because of an affinity for their favorite shows, while cost is a major driver of cord-cutting intent. The study, conducted by Beagle Insight and Miner & Co. Studio looked at 4 segments of TV viewers whose attitudes could signal future trends in pay-TV subscription intent.

The first 2 segments hail from the “Cross-Platformers” category – viewers who watch TV on a traditional set-top box but also stream content. Within this category, those who are loyal to their pay-TV subscription say they intend to stick with their set-top box TV viewing primarily because they like watching live TV (55%) and would miss their favorite shows (44%). “Cross-platformers” who are “straying,” though (meaning that they intend to cut the cord at some point in the future) say that’s the case because pay-TV is too expensive (54%). Ease of finding the content they want through websites, applications, or streaming is also a factor, cited by 36%, but trails cost as a motivator by a significant margin.

The other 2 segments come from the “Broadbanders” category – viewers who don’t have a pay-TV subscription, but instead stream content across various devices. “Independent Broadbanders” who play to stay away from pay-TV subscriptions cite cost as their main reason: 75% believe pay-TV is too expensive or not a good value, while 52% simply can’t afford it. Notably, though, among “Pay-TV Craving Broadbanders,” who intend to return to a pay-TV subscription, a leading 44% say they intend to do so because they miss their favorite shows, with 38% saying they want to watch the current season of their favorite shows. (An equal proportion – 38% – also said they would return because their financial situation is improving.)

About the Data: The data is based on interviews of 2,500 adults aged 18-49, with supplemental interviews (n=310) conducted to specifically profile Millennial (18-34) Broadbanders.

Participants were representative by age and gender, were required to have high-speed internet service (at home or mobile), and were required to be the current decision-maker or share in the decision for services.

Universe estimates based on the US Census and Pew Internet & American Life Project, Post-Election Survey, Nov/Dec 2012.

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