They may not have made a strong move to kill their cable bill, or simply get their content from a free or paid streaming service, those who are in their 20s now, in 2014, are shifting habits and will eventually be the cord cutters or the never corded. This behavior is even more prevalent among 18- to 34-year-olds who have grown up with technology. In fact there is an entire generation of Millennials who are in jeopardy of being cord-cutter (or cord-nevers) once they become responsible for their own cable bill.
Recent announcements about over-the-top (OTT) products from HBO, CBS and Sony as well as offerings from Comcast and DirecTV point to an anticipated shift in viewing behavior, if it’s not already here.
According to Nielsen’s recent Cross-Platform Report, 69% of U.S. adults 18+ today own a gaming console, multimedia device or enabled TV. And 21% of US households now have dedicated set-top or plug-in devices, an increase of 10x since 2010. Which means they have the ability to stream content on-demand in several ways. Additionally, there’s been 53% growth in media consumption year-over-year for 18- to 34-year-olds, and part of this increase is due to viewing content on laptop and mobile devices.
So if there’s no denying that this change is happening, why aren’t more marketers and publishers paying attention?
I think there is a window for video content owners, publishers to get their content flowing through one of the streaming boxes, and for marketers to reach consumers through a relatively small market of channels — especially anyone targeting 18- to 34-year-olds. From 2009 through 2013, I saw publishers race to get apps into the Apple App store, only to find it was extremely crowded, hard to stay relevant and difficult to grow the subscriber base.
Publishers with a strong video offering should be pushing to get onto the major streaming devices as eyeballs shift to commercial-free, on-demand viewing, reaching consumers through the streaming device will be an important channel.
Still not convinced? My company has an intentional focus on 18- to 34-year-old Millennials, and in recent audience surveys, we’ve found 11% of the viewers to be self-proclaimed cord-cutters and another 5% cord-nevers, adding up to a combined 16%. Yet when we view the data with a different lens — specifically viewing patterns around our streaming content coverage — we see another 25%-30% of the audience actively seeking out streaming content they could only access through the likes of Amazon, NetFlix and Hulu.
Again, for marketers and publishers, there is an opportunity to connect with these young consumers NOW and shape their brand loyalty.
• Innovation will be important, so dont ignore new players, the barrier to entry with Roku, for instance, is minimal, and the competition is much less than on other platforms.
• Streaming devices are a captive, immersive video experience.
• If you’re a publisher, producing compelling content is hard, but the distribution is getting easier. If you already create compelling video content, why not embrace these platforms!
• For marketers, devices such as Roku serve ads through digital ad platforms, creating a frictionless buying experience.
The best approach for marketers and publishers is to stay one step ahead of the changing consumption landscape.
1 karma points