Pivot, the upcoming millennial skewing network from Participant Media that will launch Aug. 1 in over 40 million homes, released its first annual industry report about millennials' consumption of TV content on Tuesday.
The report found that 13% of 18-34-year-olds (8.6 million) who already have broadband service are committed to a broadband-only existence, higher than in previous reports.
When it launches, Pivot's linear feed and on-demand content will be available to pay-TV subscribers on any device, anywhere, through the Pivot app. In a cable first, Pivot will also offer a broadband-only subscription, providing live and on-demand access to its programming without a pay-TV package.
The study, which was led by Karen Ramspacher, senior VP of research and insights for Pivot, and conducted by Miner & Co. Studio, in association with Beagle Insight, profiled two newly-defined consumer-focused categories: broadband only ("broadbanders") vs. broadband-plus-pay TV ("cross-platformers").
In addition to the 8.6 million broadbanders, the report found that 17.9 million (27%) cross-platformers are looking to stray from the ecosystem.
However, data indicates that both groups can be attracted to TV through new offerings. 87% of at-risk cross-platformers ("strayers") would consider keeping their pay-TV subscriptions if offered programming streamed live and on demand anywhere, while 58% of broadbanders would consider subscribing to TV for a bundle of networks from their broadband provider, streamed live and on demand.
The study found that if offered channels that streamed not just VOD content but live programming as well to any device at anytime, 85% of cross-platformers among the 18-34 crowd noted they would feel better about MVPDs, and 51% of broadbanders in that demo say they would consider paying as much as $20 per month for such a bundle.
"Our goal with this study was to start a conversation about attracting a new generation of MVPD customers. The future of our industry isn't just about staving off decline, but growing the video business by showing the 100 million plus audience under 30 that our products can fit their media lifestyle," said Evan Shapiro, president, Pivot and Participant Television.
"It is clear from our study that the industry at large could make a substantial dent in the attrition of pay-TV subscribers by offering VOD and live streaming products that would retain and attract this specific group of video customers," added Ramspacher.
Pivot conducted an online survey of 2,500 adults 18-49 and 310 supplemental interviews with adults 18-34.