Strange "self-soothing" logic here.
First off, "traditional" TV, practically by definition, is OTA TV. Since when
has cable TV become "traditional TV"? But okay, let's use that term.
Then,
"New statistics show that about 31 million U.S. consumers, which represents
about 12% of the adult population, fall into the Cord Never category. In 2017
that number was around 9%. Today, the median age for Cord Nevers is 33, while
their average household income has increased from $41,500 in 2017 to $52,800 (a
27% increase)."
Okay, so the group of "cord nevers" is increasing, as are their median incomes.
Does this suggest the issue has anything to do with income levels? Sounds to
me, quite the opposite.
"MRI-Simmons reports that about 27% of Cord Nevers-around 8 million-plan to
sign up for a pay-TV service in the next six months. Around 70% say they will
subscribe to a traditional service (cable, fiber optic or satellite), while the
remaining are looking at streaming TV packages, like Hulu with Live TV, DirecTV
Now or Sling TV; among the 18-34 age range, 41% are looking at streaming
options."
Even assuming some of this is true, there's the younger bunch of cord nevers
coming on the scene. Somewhere else we saw that FOTI TV material was a
fast-growing category, so it's not at all clear where a reversal of the cord
nevers trend would be coming from. Besides which, these cord nevers are not
likely to go with what they call "traditional" TV at all, but rather, perhaps,
some OTT form of pay TV.
And to further demonstrate the illogic of this "self-soothing,"
"Young people used to say that as soon as they got their first well-paying job,
they would sign up for the full suite of traditional TV services," said Karen
Ramspacher, senior vice president innovations and insights at MRI-Simmons.
"Today, there are many more options for connecting to TVideo content-so
competition for these subscription dollars is fierce. As they grow in numbers
and wealth, today's Cord Nevers definitely represent an opportunity for content
providers-but understanding the Nevers' underlying motivations is essential to
targeting them effectively."
Exactly. So, ignoring the younger set of cord nevers coming on the scene, it
seems unlikely that those who do begin paying for TV will go for the
1970s-1980s traditional MVPD model. Why would they, once they have experienced
the options and flexibility available from OTT sites? And we know that more pay
OTT sites are on the way, to boot.
The article predicts a reversal of a trend, with no justification of any sort.
Bert
---------------------------------------------
https://www.tvtechnology.com/news/nearly-31-million-americans-have-never-paid-for-traditional-tv
Nearly 31 Million Americans Have Never Paid for Traditional TV
These "Cord Nevers" represent about 12% of the adult population.
Michael Balderston 8 hours ago
NEW YORK-Though "Cord Cutters" have been a popular group to follow as the
traditional TV and streaming landscapes have evolved over the last few years,
MRI-Simmons has revealed new research that shows there are a growing number of
people who qualify as "Cord Nevers," Americans that have never paid for a
traditional TV connection.
New statistics show that about 31 million U.S. consumers, which represents
about 12% of the adult population, fall into the Cord Never category. In 2017
that number was around 9%. Today, the median age for Cord Nevers is 33, while
their average household income has increased from $41,500 in 2017 to $52,800 (a
27% increase).
Things may soon change for this group. MRI-Simmons reports that about 27% of
Cord Nevers-around 8 million-plan to sign up for a pay-TV service in the next
six months. Around 70% say they will subscribe to a traditional service (cable,
fiber optic or satellite), while the remaining are looking at streaming TV
packages, like Hulu with Live TV, DirecTV Now or Sling TV; among the 18-34 age
range, 41% are looking at streaming options.
There are a variety of reasons Cord Nevers say they want to sign up for pay-TV
services, with the ability to channel surf high among them, especially for
those 35 and older. For those in the 18-34 age group, a good deal on a TV
package and the easier ability to watch/find shows are key factors.
"Young people used to say that as soon as they got their first well-paying job,
they would sign up for the full suite of traditional TV services," said Karen
Ramspacher, senior vice president innovations and insights at MRI-Simmons.
"Today, there are many more options for connecting to TVideo content-so
competition for these subscription dollars is fierce. As they grow in numbers
and wealth, today's Cord Nevers definitely represent an opportunity for content
providers-but understanding the Nevers' underlying motivations is essential to
targeting them effectively."
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