Last night was the first time I saw an ad for a new movie, Cloverfield Paradox. The movie trailer was very inviting, and I was intrigued because I do consider myself a modern-day movie buff. As the trailer came to a close, in my head, I already envisioned myself watching this movie on a big screen in a great movie theatre atmosphere. I suppose that’s what the marketing of Netflix was shooting for. Yes, this prolific movie trailer was for a Netflix original movie and this evoked the topic of “cutting the cord”. Are we seeing Netflix and other streaming services going after cable companies, with quality movies, TV series, and documentaries, to exterminate the cable industry?
In this day and age, I have seen millennials not so hesitant to cutting the cord and going without cable. Many college students are stereotyped for our lack of funds because of our tendencies of going without cable while in college. Many cable companies see this demographic key to the survival of television. Millennials make up more than a fifth of the television audience and marketers look to this demographic as a major hub for potential earnings and receptivity to advertisements.
Cable is the most dominant medium when it comes to delivering television for all age groups, but many young adults don’t subscribe to a cable company but would rather connect their television to the internet in some way. Some may rely on streaming networks such as Hulu, Netflix, and Amazon Prime. These companies are becoming more prominent competitors to cable companies, especially in the millennial demographic.
Should cable companies really worried?
Some marketers are wary of how they will reach the Millennial demographic. They view their lack of cable television usage as a hindrance. Others in this field see this as an opportunity. The fact of cutting the cord disrupts a channel of reach to this group, but that means their attention has been drawn elsewhere. “Millennials are more than four times more likely to say that video ads that they view on their cell phone are useful.”(Experian) This quote from Experian shows that our generation are more susceptible to our ads on our mobile technology and the internet. Some optimistic marketers see this as an opportunity rather than a hindrance to their work. it is a challenge to find ways to market to this group as well as other who are following the route of “cutting the cord” but it opens up different channels to reach the target audience. Online video viewers are easier to target with particular content based on the relevance of the videos being selected by the viewer. This movement toward online video viewing could potentially make the jobs of marketers easier to target a specific audience.
Others that speculate cable won’t lose its relevant look toward a specific ideology that will draw millennials back to cable. The fact that we are still a relatively young generation and many of us have not yet started families can be a sign of why we have yet to subscribe to cable for our in-home media consumption.
We think behaviors could change once the so-called millennials start having families,” said Glenn B. Enoch, senior vice president for audience insights at Nielsen. New parents’ desire for better programming for their children will help drive them to cable, media executives have predicted. About 80 percent of millennials with their own homes who have started families subscribe to cable, and an additional 14 percent get television with an antenna, according to Nielsen. Only 6 percent have just broadband connected to a television set. (NYTimes)
Cable companies are relying on the idea of starting a family to draw the millennial demographic back, though streaming networks such as Netflix and Amazon are pushing to expand their children’s series in hopes of luring parent subscription. The way in which marketers are going to reach various audiences is expanding and it will take diversification of outlets to reach all groups.
Steel, Emily, and Bill Marsh. “Millennials and Cutting the Cord.” The New York Times, The New York Times, 3 Oct. 2015, www.nytimes.com/interactive/2015/10/03/business/media/changing-media-consumption-millenials-cord-cutters.html.
“Rise in cord-Cutting creates opportunities for marketers.” Marketing Forward Blog, Experian, 9 Jan. 2017, www.experian.com/blogs/marketing-forward/2014/05/06/rise-in-cord-cutting-creates-opportunities-for-marketers/.