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Viewers believe pay-TV ‘value gap’ is expanding

New report from Deloitte finds roughly half of pay-TV viewers are unhappy with their service

Deloitte’s new Digital Media Trends report has revealed roughly half of pay-TV viewers believe the value of what they pay for, and what they get, is expanding.

The report says the growth of streaming video has, in part, led consumers to reassess the value of their pay-TV subscriptions. The biggest issue is cost, with 70 per cent of the 4,000 viewers surveyed by Deloitte saying they get too little value for the money they spend. 

Some 56 per cent said they only keep their pay-TV service because it’s bundled with their home internet service.

Deloitte also found 21 per cent of viewers said they don’t watch enough television to justify the expense of pay-TV. 

Between 16 and 22 per cent of Generation Z, millennial, and Generation X households have never had a pay-TV subscription and are unlikely to start, the report says. 

The three groups, which the report has dubbed ‘milleXZials’, are driving the streaming phenomenon. In 2017, 70 per cent of Gen Z households had a streaming subscription, closely followed by millennial (68 percent) and Gen X (64 percent).

Each week, about 70 per cent of Gen Z and millennials stream movies (compared with 60 per cent of Gen X), and 69 per cent of Gen Z stream TV shows (compared with 66 per cent of millennials and 55 per cent of Gen X). The report suggests MilleXZials’ increased streaming behaviour is largely driven by a desire for high-quality, original video content, along with the ability to view this content whenever and wherever they want.