TV Everywhere: It’s All About Millennials
New survey from Altman Vilandrie & Company and EPIX shows pay TV can attract younger consumers with TVE, but awareness remains low
BOSTON, MA – October 14, 2015 – TV Everywhere (TVE) could entice more millennials to subscribe to pay television services if awareness of the opportunity to watch movies and TV shows on multiple devices grows, according to a new annual survey of multiplatform video viewing trends released today by strategy consulting firm Altman Vilandrie & Company and premium entertainment network EPIX.
While the percentage of occupied U.S. TV households without pay TV service—now about 17%—is continuing to increase, millennials (ages 18-34) are significantly less likely to subscribe (72%) than consumers over 35 (86%). Millennial consumers represent just 20% of pay TV subscribers but make up 37% of consumers who have either dropped their multichannel video subscription (“cord-cutters”) or eschew pay TV altogether (“cord-nevers”).
However, the survey data reveals that TVE could help curb cord-cutting, as younger millennials (18-24 year-old subscribers) are 23% less likely to explore TV alternatives or to switch providers if they know their video provider offers TVE than if they think the service is not available. For subscribers unaware that their provider offers TVE, more than half (55%) of young millennials and 48% of older millennials (25-34 year-olds) say they would use TVE at least once a month if their provider offered it. Additionally, a majority (54%) of young millennials and 47% of older millennials who do not have multichannel video service agree that they would be more likely to consider subscribing to pay TV if they could watch content on devices other than their TVs.
Consumer awareness of the ability to watch programs on devices other than a TV, typically through apps provided free to subscribers, remains persistently low at 36%, with little difference among pay TV subscribers by age. For 18-24 year-old subscribers aware of TVE, 7 in 10 say they use the service monthly — more than the 57% of older millennials and well above the 43% of all multichannel video subscribers aware of TV Everywhere.
“Young viewers tend to be mobile device viewers and the survey shows that the best way for pay TV operators to capture and retain those consumers is through TV Everywhere,” said Jonathan Hurd, the Altman Vilandrie & Company director who led the survey. “However, providers need to do a much better job of promoting TV Everywhere and driving its usage or risk continued erosion of subscribers, especially millennials.”
The study also finds that subscribers to EPIX, which is available on hundreds of mobile and connected devices, are significantly more aware of TVE offerings at 61% (70% higher than the national average). These viewers also confirm the trend: Those aware of TVE are more likely (81% vs. 72%) to say that they will definitely or probably not discontinue their multichannel video service over the next six months than subscribers unaware of TVE.
“From the beginning, TV Everywhere has been a core pillar of our business, knowing consumers want to watch content when they want, where they want and how they want,” said Mark Greenberg, president and CEO of EPIX. “We’re excited that the findings of this study highlight how important TVE offerings are to the pay TV landscape in maintaining subscribers and growing viewership.”
The survey also found that video viewing on mobile devices is particularly high among millennials. Almost half (46%) of millennials report using their smartphones and/or tablets to watch movies or TV shows at least weekly compared to 38% of all mobile device owners.
Other findings from the survey include:
- Multichannel video subscribers aware of TVE are much more likely to use their provider’s on-demand service weekly to watch movies (32% vs. 20%) and TV shows (44% vs. 27%) than those who are unaware
- Among all weekly TVE users, millennials are at least twice as likely as consumers over 35 to use TVE to view movies (38% vs. 16%), live TV shows (30% vs. 15%) pre-recorded TV shows (33% vs. 15%) and live sports (31% vs. 12%)
- When asked why they subscribe to pay TV, consumers aware that their provider offers TVE are much more likely to identify the choice and convenience provided by TVE as a reason to subscribe, including:
- I can watch it according to my own timetable, whenever I want (#1 reason)
- I can watch on devices other than my TV
- I can watch it away from home (e.g. laptop, mobile phone, tablet).
The survey, conducted by Altman Vilandrie & Company since 2010 and co-sponsored this year by EPIX, also analyzed pay TV subscribership, online video usage, mobile viewing, multitasking and binge-watching. Key portions of this analysis are available to media by request.
Altman Vilandrie & Company fielded the online survey in July among more than 3,400 U.S. consumers. For details about further research topics and more information about the study, contact Jonathan Hurd at [email protected].
About Altman Vilandrie & Company
Altman Vilandrie & Company is a strategy consulting group that focuses on the telecom, media, technology and investor sectors. The company’s consultants are experienced in strategy, marketing, finance, M&A, technology, regulatory and operations disciplines. Based in Boston, with offices in New York City and San Francisco, Altman Vilandrie & Company enables clients to seize new opportunities, navigate mounting challenges, improve business performance, and increase investor value within complex and converging industries.
Ninety percent of the boutique firm’s operator clients are large- to mid-cap companies including service providers, technology and software developers, and media companies. Altman Vilandrie & Company’s financial clients include many of the largest and most prominent investors in the telecom, media and technology markets.
EPIX® is a premium movie and original programming entertainment service delivering the latest movie releases, classic film franchises, original documentaries, comedy and music events on TV, on demand, online and on devices. Launched in October 2009, EPIX has pioneered the development and proliferation of “TV Everywhere.” It was the first premium network to provide multi-platform access online at EPIX.com and was the first premium network to launch on XBox 360, PlayStation® 3 and 4, Android phones and tablets, Windows 8.1 and Roku® players. EPIX is available to authenticated subscribers on hundreds of devices including Chromecast and Apple® iPads® and iPhones® and is the only premium service providing all its programming on all platforms, delivering more movies than any other premium network, with thousands of titles available for streaming.
EPIX is a joint venture between Viacom Inc. (NASDAQ: VIA and VIA.B), its Paramount Pictures unit, Lionsgate (NYSE: LGF) and Metro-Goldwyn-Mayer Studios Inc. (MGM). Through relationships with cable, satellite and telco partners, EPIX is available to over 50 million homes nationwide. For more information about EPIX, go to www.EPIX.com. Follow EPIX on Twitter and Periscope @EpixHD (http://www.twitter.com/EpixHD) and on Facebook (http://www.facebook.com/EPIX), YouTube (http://youtube.com/EPIX), Instagram (http://instagram.com/EPIX), Google+ (http://plus.google.com/+EPIX), Pinterest (http://pinterest.com/EPIX) and Vine (https://vine.co/EPIX).
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Cort Boulanger for Altman Vilandrie & Company
Michelle Hinchey for EPIX