New TV Media Company Model to Attract Marketers

Cable TV operators are rolling out new services to stop more consumers from cutting the cord. TV viewers between the ages of 18–34 are onlinevideomore likely than those in other age groups to cancel their paid subscriptions. In a State of the Industry report, Pivot, from Participant Media, argues that offering the right types of packages to these consumers is the way to increase viewership and the revenue that comes from subscriptions and ad dollars.

Pivot research shows that at least 13% of 18–34 year-​olds, or 8.6 million users, are content with their broadband Internet access and have no intention of paying for TV service separately. Media companies may find it ominous that another 17.9 million users, or 26% of this age group, are considering giving up pay TV and using broadband to satisfy their TV content needs.

Robert Miner, President, Miner & Co. Studio, believes the way to build a pay TV audience in the younger generation is to offer “customers bundles of services including VOD and live streaming where they want, when they want, and at a price point that is acceptable to their life stage.” Specifically, the Millennials like:

  • VOD streamed everywhere/​anywhere 92%
  • Live streaming TV everywhere 86%

To test these assumptions, Pivot will launch a new kind of TV service in August in 40 million homes. Consumers will be able to order this service through regular pay TV or broadband. Executives have promised to show content designed to interest the Millennial demographic.   If Pivot is successful in attracting viewers with this model, it is likely to be copied by other providers who have been seeking ways to build audiences in the Millennial demographics This strategy also holds potential for marketers who might be able to advertise to unique audiences on either broadcast or traditional TV through this service.

To learn more about Millennials, check out the AudienceSCAN report available on the Research Store at ad​-ology​.com.


Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.