Embrace the “cable cutters” don’t resist them!
Published on 26/02/2019
As a Millennial, I’ve heard a lot of my friends say: “who still watches cable TV these days aside from my parents?” Not only that but when I try to make plans with some my friends over the weekend some say: “I feel like staying home and catching up on my TV shows instead of going out.” As cable providers, I’m sure you are aware of these realities and you are trying to develop strategies to undercut the “cord cutting” trend set by Millennials. However, as a Millennial, I would urge cable companies to embrace the changes in video consumption. Here are my 3 main recommendations to you as a Millennial:
1. Understand the reality.
Things are changing, and you can’t do anything about it. Statistics from Parks Associates show that: “between 2013-2018, the service showing the highest percentage of decline is standalone TV while the single service of standalone internet has the highest increase. Standalone internet increased by approximately 20% while standalone TV decreased by approximately 32%.” What does this mean? Simple. People prefer cable TV for more internet and this is a real threat to modern day cable operators.
2. Don’t fear OTT.
These services have disrupted the market and we all know it: it’s obvious. “Subscribers are abandoning traditional Pay TV for OTT services, which reached a subscription penetration of 64% in Q1/18.” (Parks Associates) However, I wouldn’t take this data as the ultimate truth for video consumption. Even as a Millennial, I don’t want to wait until a full season of my favorite show is out on OTT to binge watch it. I usually only binge watch when I’m bored. The industry of PayTV may be changing but it is not dead. The top three reasons for abandoning PayTV all relate to the cost or perceived value of the service. Millennials understand that streaming illegally is not a way to keep your favorite show on the air. Just like Spotify made streaming music easier and provided good value for money, cable providers can and should find solutions that reduce their overall costs by still being able to provide recording options for Millennials. If Millennials can record and watch what they want when they want it for a reasonable price: time and time again they have proven to choose this option.
3. Be at the forefront of the technology adoption curve.
Find solutions that help you integrate OTT and PayTV: innovate. The race towards affordable IPTV and TVaaS has started and companies are developing these great technologies that will help cable providers bring services that accommodate not only Millennials but cable cutters as well. If you have any questions on whether Elevate by Espial may be the right solution for your company, please feel free to reach out to us.
Take it from this Millennial, one thing that will never change is that we all love watching television. The only thing that changed is how we watch it.
Your millennial insider,