Cord cutting has become a legitimate threat to linear TV: 38% of 18- to 32-year-olds say they don’t watch enough TV for it to be worth the money, and 36% say they simply aren’t willing to pay the going rate, according to new Forrester data. Added to that, the networks find themselves in a distant third (30%) behind Netflix (57%) and YouTube (55%) in consumer adoption of online TV shows and movies.
But don’t write the epitaph for the TV industry as we know it just yet. Forrester believes that the industry will adapt and won’t collapse under the mounting pressures — brought on by disruptors such as Amazon, Apple, Google, Netflix, Samsung, and Sony — but will go on to compete for the key to its future: customer data.
How will they do it? In addition to continuing to deliver the reach that advertisers need, the TV business will take a cue from Netflix’s book, to build direct customer relationships — with or without a subscription.