Despite all the hoopla around cheap internet-based $20-a-month live, linear TV packages, the jury is still out. That's especially true among millennials.
What if those young viewers -- perhaps with less-than-adequate resources or decent-paying jobs -- want something even cheaper?
Maybe they just want a digital TV antenna for a one-time cost of $20-- one where you can get a bunch of local stations with TV network programming. A Wall Street Journal article on Wednesday raised that concern.
Seems the real “must-have” long-term media service/device is a mobile phone, maybe with a plan as cheap as $30 or $40 a month.
On a vacation trip back to California, a young female air traveler, definitely in her 20s, sat in front of me. She asked the passenger next to her if she could borrow a phone -- to call her relatives and confirm pickup.
Why was this millennial without a phone? (Could she be scamming that passenger?) Once I ruled out any nefarious activity, I thought of another scenario. Maybe a mobile phone commitment was just too much for her.
advertisement
advertisement
The big sell around “skinny TV” bundles is low cost. TV, media and phone companies hope this will be enough of a draw for long-term behavior commitment.
But some studies believe that is the wrong equation. The issues isn't price, but alternatives. A survey from Videology earlier this year found only one-third of millennial males plan to pay for television this year, with 9% saying they plan to cancel their cable subscriptions.
Instead, it's about having near-term options: monthly, weekly, daily. If millennials are going to pay for anything TV-wise, it might just be Netflix, Amazon and Hulu. Basically, any service that is available a la carte -- and can be cancelled at anytime.
TV executives should stop thinking of the digital future like an easy chair. Don’t get too comfortable -- a sharp spring could await.
Good points, Wayne. Makes sense.
Goes futher than millenials, too. Cable companies do not stick to their contract deals either.