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[06/11/13 - 02:39 PM]
Pivot's First Annual State of the Industry Report Reveals Increasingly Large Percentage of 18-34 Year Olds Have Become "Broadbanders," Abandoning the Pay TV Ecosystem
The study is the first to release data about the sizing of the millennial market in terms of broadband only vs. broadband plus Pay TV.

[via press release from Pivot]

PIVOT'S FIRST ANNUAL STATE OF THE INDUSTRY REPORT REVEALS INCREASINGLY LARGE PERCENTAGE OF 18-34 YEAR OLDS HAVE BECOME "BROADBANDERS," ABANDONING THE PAY TV ECOSYSTEM; A GROWING NUMBER PLAN TO DO SO IN THE NEXT YEAR

Comprehensive Study, Commissioned By Network Targeting Millennials, Reveals That Among Broadband Subscribers 18-34 Years Old, 13% (8.6 Million) Are Currently Broadband-Only Customers; And 27% (17.9 million) of Millennial Pay TV/Broadband Subscribers - aka 'Cross-Platformers' - Are At Risk of Cutting Their Pay TV Subscriptions

Data Also Shows 58% of Broadband-Only Subscribers Would Consider Subscribing To TV And 87% of At-Risk Pay TV Subscribers Would Maintain Their Subscription If A More Robust TV Everywhere Offering Were Available, That Includes Live And On Demand

Washington, D.C. -- June 11, 2013 -- Pivot, Participant Media's new cable network, launching in over 40 million homes on August 1, released its first annual Industry Report about millennials' consumption of TV content. The comprehensive study examined how the current Pay TV ecosystem could be impacted if programmers and MVPDs provided consumers with a new distribution alternative that speaks specifically to this demographics lifestyle and viewing habits. The study is available at www.pivot.tv.

Evan Shapiro, President of Pivot and Participant Television, who unveiled the data today during The Cable Show in Washington, D.C. said: "Our goal with this study was to start a conversation about attracting a new generationof MVPD customers. The future of our industry isn't just about staving off decline, but growing the video business by showing the 100 million plus audience under 30 that our products can fit their media lifestyle." Shapiro added: "The data clearly shows that a bundled next-gen TVE offering - with both LIVE streamed channels plus VOD TV content, anywhere/anytime - would be a Killer App for keeping many millennials at risk of leaving our ecosystem and wooing those college kids and recent grads we're now losing."

The study, led by Karen Ramspacher, SVP of Research and Insights for Pivot and conducted by Miner & Co. Studio in association with Beagle Insight, is the first to release data about the sizing of the millennial market in terms of broadband only vs. broadband plus Pay TV by profiling two newly-defined consumer-focused categories: Broadbanders (aka cord cutters/nevers), a more accurate and actionable moniker for those who do not currently subscribe to pay TV services but have broadband/Internet access and watch TV programming; and Cross-Platformers who comprise subscribers that have both broadband and Pay TV.

The report found that 13% of 18-34 year olds (8.6 million) who already have broadband service are committed to a broadband-only existence, a much higher percentage than in previous reports. In addition, many Cross-Platformers are looking to stray from the ecosystem (17.9 million 18-34s as well as 32 million 18-49s). However, data indicates that both groups can be attracted to TV through new offerings. 87% of at-risk Cross-Platformers (aka "Strayers") would consider keeping their Pay TV Subscriptions if offered programming streamed Live and On Demand anywhere/everywhere, while 58% of Broadbanders would consider subscribing to TV for a bundle of networks from their broadband provider, streamed Live and On Demand.

Robert Miner, President, Miner & Co. Studio, said: "Research indicates that offering customers bundles of services including VOD and live streaming where they want, when they want, and at a price point that is acceptable to their life stage could keep a number of Cross-Platformers at the table with the potential of bringing Broadbanders into the fold."

Data shows that if offered channels that streamed not just VOD content but Live programming anywhere/anytime, 85% of Cross-Platformers ages 18-34 noted they would feel better about MVPDs. Among 18-34 year olds, 51% of Broadbanders say they would consider paying as much as $20 per month for such a bundle (that includes the Pivot APP).

In March, Pivot announced a distribution model unique in the industry, offering Pay TV Subscribers TV Everywhere Live and On Demand, on any device, anywhere, anytime; as well as offering Broadband-Only Subscribers the channel Live and On Demand through their Pivot APP, via subscriptions, which will be available only through their broadband providers.

Ramspacher offered: "It is clear from our study that the industry at large could make a substantial dent in the attrition of Pay TV subscribers by offering VOD and live streaming products that would retain and attract this specific group of video customers."

Additional results below for 18-34 year olds:

· 92% want VOD streamed everywhere and anywhere

· 86% want Live streaming TV everywhere

· 94% would feel more positively about networks that offer VOD streamed everywhere

· 91% would feel more positively about networks that offer Live streaming TV everywhere

· 89% of Cross-Platformers are more likely to keep their cable, satellite, or telco TV subscription if they were offered TV networks/channels that provided VOD streamed everywhere

· 85% of Cross-Platformers are more likely to keep their cable, satellite, or telco TV subscription if they were offered TV networks/channels that provided Live streaming TV everywhere

· 87% of at-risk Cross-Platformers (aka "Strayers") would consider keeping their Pay TV subscriptions if offered programming streamed Live and On Demand anywhere/everywhere

· 55% of Loyal Cross-Platformers intend to keep Pay TV primarily because they like the option of watching Live TV

· 44% of Pay-TV-Craving Broadbanders miss their favorite Live shows, while only 19% say they miss Live sports

· 31% of Pay-TV-Craving Broadbanders miss watching Live TV as an option

· 58% of Broadbanders say they are likely to subscribe to a bundle of TV networks from their ISP if offered

· 51% of Broadbanders and 85% of potentially straying Cross-Platformers say they would consider paying as much as $20 per month for such a bundle (that includes the Pivot APP)

· 84% are interested in Pivot, Participant Media's new network

· 52% of Cross-Platformers and 41% of Broadbanders are very interested in the Pivot APP

Methodology

Online survey of 2,500 Adults 18-49 with 310 supplemental interviews Adults 18-34 / May 21-29th 2013

ABOUT PIVOT

Pivot (pivot.tv) is a new television network from Participant Media, serving passionate millennials with a diverse slate of talent and a mix of original series, acquired programming, films and documentaries. Pivot focuses on entertainment that sparks conversation and inspires change, using programs such as "TakePart Live", its nightly talk show, to illuminate issues through engaging content, and its website TakePart.com to continue the conversation and connect audiences to a wealth of content and customizable actions. Pivot is also changing the media landscape, available via traditional Pay TV subscription this summer to 40 million-plus homes as well as a Live streaming channel via its interactive, downloadable Pivot APP. In both content and delivery, Pivot is TV for The New Greatest Generation. Follow Pivot on Twitter at @pivot_tv and on Facebook at www.facebook.com/pivottelevision.

ABOUT PARTICIPANT MEDIA

Participant (participantmedia.com) is a global entertainment company founded in 2004 by Jeff Skoll to focus on feature films, television, publishing and digital content that inspire social change. Participant's more than 40 films include GOOD NIGHT, AND GOOD LUCK., SYRIANA, AN INCONVENIENT TRUTH, FOOD, INC., WAITING FOR 'SUPERMAN', THE HELP, CONTAGION and LINCOLN. Participant's social action campaigns and digital network TakePart.com continue the conversation and connect audiences to a wealth of content and actions. Its new millennial television network Pivot (http://www.pivot.tv), launching this summer in 40 million-plus homes, is TV for The New Greatest Generation.





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