Cord-cutting rockets as millennials opt for DIY bundling10 September 2016
Up to ten per cent of households have now ditched their subscription TV packages in favour of SVoD services such as Netflix, new research reveals.
Speaking at Thursday morning’s IBC session, ‘The New Broadcasters: The Analyst’s View’, Ampere’s Guy Bisson revealed the disruption that OTT services such as Netflix are having on Europe’s pay-TV market.
“Subscription video on demand services have been outstripping pay-TV in terms of net additions since 2012. In some European markets, SVoD-only households make up ten per cent of all households. The average number of SVoD-only households now stands at eight per cent – a year-on-year rise of two per cent.”
Bisson added that the typical cord cutter was 50 per cent more likely to fall within the millennial demographic. He added that while this segment was 14 per cent more likely to subscribe to pay-TV services, they tend to be more fickle with 50 per cent of them more likely to have changed TV providers within the last year.
“There’s a significant amount of DIY building going on,” Bisson noted.
However, Bisson added that he believed there was still a role for the aggregator with carriers such as Virgin and BT bringing Netflix into convenient packages for their customers, combined with the latest viewing experiences such as Ultra HD.
“Together they are stronger – we will see more partnerships like this, it’s a natural evolution,” he predicted.