- Loyalists - those who like and are satisfied with current program delivery systems. Fans of bundling, they like having all of their viewing options available from one source, and aren't likely to become cord-cutters absent a major change. About a third of Gen Y seems to fall in this category.
- Leaners - this group, while remaining tied to traditional TV outlets, have at least considered the possibility of switching to an alternative TV delivery mechanism, whether by shifting from bundled program delivery to a la carte subscriptions or by programming delivered through the net. The researchers felt that compared to Loyalists, they seemed more interested in convenience and control than costs or added features. This group currently accounts for 29% of Gen Y audiences.
- At Risk - accounting for 28% of the Gen Y audience, this segment has given serious consideration to cord-cutting. They strongly prefer the control over programming that a la carte and IPTV television delivery offers. They already watch video programming online, and are likely to have tablets, WiFi, and subscriptions to Netflix. They're also more likely to view cable or DBS as a luxury and are sensitive to cost increases.
- Nonsubscribers - one in five Gen Y's fall into this category, and consist of those who currently don't pay for television services. This segment can be further broken down into two groups - Evaders (those who have never purchased cable or DBS multichannel services, and Defectors, who have had paid TV subscriptions in the past, but have dropped those services. For both, the driving issue is whether they feel the costs outweigh the benefits they're likely to gain from having access to multichannel video services. A significant portion of Evaders simply don't see much value in television programming.
The study also found that those in the At Risk category were open to the idea that the implementation of the "TV Everywhere" concept could bring the level of customizability and control currently missing in multichannel and broadcast systems.
As one respondent observed, TV Everywhere "sounds like the link between the Internet and TV that I’ve been looking for.”At the very least, the results of this study suggest that cable TV and DBS marketers shouldn't continue their old view of passive audiences and marketing themselves with the traditional "it's TV with more channels" focus. As the report indicates, “Engagement strategies must be carefully tested because young consumer desires aren’t necessarily in line with business (models) of subscription-based pay TV companies today.”
Source - Gen Y's Latest Trend: Cord Cutting, TVNewsCheck