Michelle Clancy | 10-09-2013
As basic pay cable TV prices are estimated to be $123 per month in 2015 and $200 per month by 2020, young US adults aged 18-34 are starting to migrate away from traditional TV. A full 35% of those surveyed in a new study said they have cut the cord and stopped subscribing to pay-TV altogether, opting to use online services only.
According to the commissioned study from BluePromoCode.com, the majority of respondents are also opting to watch TV using streaming on-demand instead of going to the cinema or watching a DVD. More than half (52%) prefer to stream movies using an online service. Only 5% reported using cable TV's VOD services to watch movies.
When it comes to the over-the-top (OTT) service of choice, Netflix is nearly twice as popular as any other online video service.
"Young adults are very price-sensitive and tech savvy" says Michael Quoc, founder and CEO of BluePromoCode.com. "This study clearly shows that they believe online services are providing a better value for them."
When it comes to where they want to watch, young adults prefer movies on the big living room screen, with 88% preferring to watch on a TV instead of smaller devices such as a phone or tablet. The biggest screen however doesn't appeal as much: overall, young people said that they go to a movie theatre just 6.5 times per year.