Despite all the talk of cord-cutting and customer exoduses from cable and satellite services, the industry seems to be hanging in there.
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So says a new report from research firm The Diffusion Group.
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According to the report, nearly nine in ten adult broadband users also have a pay TV subscription.
The report also found that Millennials do tend to have lower pay TV usage compared to their Gen X and Baby Boomer counterparts, but still adopt pay TV in the 80 percent range.
Michael Greeson, co-founder of TDG and director of research, summarized his firm’s findings thusly:
“The notion that we’re on the edge of a ‘mass exodus’ from incumbent pay-TV services to online substitutes is not supported by the data . . . Today, 88% of adult broadband users subscribe to an incumbent pay-TV service, a rate that has held relatively steady for the last 12 months.”
Addressing the issue of Millennials being more reluctant to pay for TV service, Greeson said the following:
“That said, until a legitimate virtual operator emerges capable of offering a competitive alternative to traditional pay-TV services, most Millennials will continue to subscribe to a legacy service,”
What do you think, Insiders? Is the cord-cutting phenomenon still overblown, or is the traditional pay TV model doomed after all?
[via Home Media Magazine]