Commentary

Half of Viewers Under 32 Won't Pay for TV In 10 Years

According to the Forrester Research report, Young TV Cord-Nevers Have Arrived And Are Here To Stay,  50% of all TV viewers under age 32 will not subscribe to a traditional pay TV service by 2025. Given that bleak-looking future, based on a survey of more than 55,000 U.S. adults, says the report, Forrester analyst James McQuivey suggests that providers must try new ways to connect with cord-cutter and cord-nevers and develop game plans on how to serve them.

advertisement

advertisement

McQuivey noted in the report that “… today’s 20-somethings are already hard to reach via TV, and the next generation will be tougher… “

Cable Subscription Status by Age (% of User Category)

 

User Category

Age

Cord-Cutters

Core-Nevers

Cord-Havers

2015

 

 

 

   Age 32+

5%

15%

80%

   Age 16-31

10

25

65

2025

 

 

 

   Age 16-31

15

35

50

Source: Forrester, October 2015

Some MVPDs have been taking heed, says the report:

  • Comcast is beta-testing Stream, a $15/month IPTV service that features broadcast networks, HBO and a cloud DVR, and recently introduced Watchable, an ad-based OTT service
  • Cablevision Systems has developed packages tailored for cord-cutters  
  • Verizon recently went wide with go90, its free “mobile first” offering for millennials
  • Dish Network is targeting cord-cutters and cord-nevers with Sling TV
  • CBS, HBO and Showtime have also launched standalone OTT offerings

 Cord-cutters are “secondary” to the bigger problem of the rising Cord-Nevers, a group that, according to Forrester, now represents 18% of the population, says the report. Cord-cutters represent about 6%, but will stay below a 15% ceiling. 35% of younger viewers fall into the Cord-Nevers or Cord-Cutters bucket.

  Of particular concern are “digital Cord-Nevers,” says the report. A group of young consumers that gravitate to services like Netflix and YouTube that have “grown up believing that they can have all of the TV they want without paying a traditional TV distributor for it.” But the bulk of the population, 76%, still gets pay TV, suggesting that there’s still time for traditional players to solve the problem, notes the report.

 For more from Multi-Channel News, please visit here.

3 comments about "Half of Viewers Under 32 Won't Pay for TV In 10 Years".
Check to receive email when comments are posted.
  1. Douglas Ferguson from College of Charleston, October 19, 2015 at 9:02 a.m.

    Nearly 20 percent of young men in their late 20s and early 30s still live with their cable-subscribing parents, thanks to the recession in 2009 that only ended because the media reported that it did.

  2. Douglas Ferguson from College of Charleston replied, October 19, 2015 at 9:03 a.m.

    Source:  https://www.census.gov/hhes/families/files/graphics/AD-1.pdf

  3. John Grono from GAP Research, October 20, 2015 at 1:29 p.m.

    Quite the coincidence that all the key findings are in increments of 5% with an n=55,000 sample, given that the margin of error on a simple random sample of n=50,000 should range from +/- 0.2% to +/- 0.4%.

Next story loading loading..