Young people more likely to subscribe to online pay-TV

‘Late Millennials’ living at home with their parents are, once they move out on their own, more likely to subscribe to an online pay-TV service like Netflix or Hulu Plus than a traditional pay-TV service such as cable or satellite, according to new research from The Diffusion Group.

The data, drawn from TDG’s latest research project, ‘Late Millennials: A Study in Media Behavior’, reveals that 49% of US 18-24 year olds living at home with their parents said that they felt ‘highly inclined’ to sign up for an online subscription video service once they move out on their own, compared to 31% that said they would sign up for a traditional pay-TV service.

“The very fact that young consumers perceive online video services as somehow more desirable or necessary than incumbent pay-TV services says volumes about the future of video,” said Michael Greeson, president and principal analyst for TDG.

Greeson added these dispositions could change over time if OTT TV services are unable to acquire the content this consumer demographic will want as they marry, have children, and move up the career ladder.

“In the end, it will still be less about the conduit and more about the content and value the service provides,” he concluded.