L.E.K. Consulting recently conducted the first in-depth analysis of U.K. Millennials' media consumption habits by life stage, from living at home with parents all the way through to starting their own families.
In the second installment of the Executive Insights Spotlight on Media and Entertainment: "The Perennial Millennial" series, L.E.K. explores the uptake and future interest in Over-The-Top (OTT) services among Millennials by life stage and the potential impact on traditional Pay TV providers. Key findings from our research include:
- Millennials across all life stages are already subscribing to OTT services at a higher rate of penetration than older generations
- While subscription OTT services is largely complementary for Non-millennials, it has a significant negative impact on Millennials' viewing of traditional TV services
- A large proportion of Millennials have both Pay TV and OTT and two thirds of these believe they will cancel or reduce spend on Pay TV in the future
- There is a strong interest in slim OTT bundles from Millennials
L.E.K.'s research indicates that Pay TV operators face a growing threat from the Millennial generations' preference for new media channels. Traditional media participants need to adapt rapidly and innovate further and faster to develop content propositions if they are to capture the interest and behavior patterns of the Millennial generation.
Our first installment in this series revealed Millennials' preference for new media channels at every stage of their life. Our analysis confirmed this is spreading virally to non-millennial families and older generations and provides a wake-up call to traditional media players, highlighting the major threat millennial behavior poses to the industry.