Meet Joe: Joe is a millennial who has never in his adult life subscribed to cable television. He prefers to receive his content online, rather than through a traditional pay TV service.
You’re looking at the face of a new group, who we can refer to as the “24 percent.”
According to Pew Research, 24 percent of American adults do not have cable or satellite television coverage. Breaking down this statistic further, 15 percent of this group are cord cutters, or people who have cancelled their television service. Nine percent of people have never subscribed.
As Pew Research indicates, there are a few reasons why 24 percent of American adults choose to go without cable or satellite TV. 71 percent claim that cable is too expensive. 64 percent claim that they can access content either online, or using an antenna. 46 percent simply don’t watch television often.
Here are some ways that you can turn the 24 percent into a tremendous opportunity for your business:
- Look to skinny bundles: It’s simple: People who don’t watch television often will not want to pay for programming they don’t watch. Don’t expect existing video models to win over the 24 percent anytime soon. Instead, consider offering skinny bundles which are slimmed-down, customizable channel packages. They are a great add-on to an Internet-only customers and increase stickiness.
- Increase broadband speeds: It’s all about the pipe into the customer’s home. Deliver the fastest, most reliable connection and you’re likely to find a loyal customer. Remember that 64 percent of the 24 percent haven’t subscribed because they get content online. They still need an internet connection.
With these points in mind, look at the 24 percent as a challenge. How many consumers will you convert to paying customers this year?