TDG: Millennial ‘cord-nevers’ satisfied by SVOD services

Most US millennial web users who have never signed up for legacy pay TV services believe the likes of Netflix and Hulu “satisfy their video needs,” according to new research.

The Diffusion Group (TDG) study found that on a seven point scale – where one is of no relevance and seven is extremely relevant – 77.9% of millennial ‘cord-nevers’ said that SVOD ranked a five or higher as a reason to forgo legacy TV.

Of the 81% of cord-nevers aged 20 to 35 who use subscription video-on-demand services, more than 90% said they thought these services are sufficient to meet their video requirements.

“The choice to live without legacy pay TV is undoubtedly multi-dimensional,” said TDG’s director of research, Michael Greeson.

“High costs, poor value, and the availability of substitutes all play a role in this decision. Yet while cost of service has long been the dominant factor driving millennial cord nevers, the availability and sufficiency of SVOD now ranks as equally important.”

The TDG survey polled nearly 1,000 US millennial cord-nevers in the second quarter of 2016.