Executive Insights Media & Entertainment Analysis The research indicates that Pay TV operators face a growing threat from the Millennial generation’s preference for new media channels • Millennials across all life stages are already subscribing to OTT services at a higher rate of penetration than older generations • While subscription OTT services are 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 What does this mean for the media industry? • Traditional media participants will need to adapt rapidly to compete in this fast-emerging new environment • There needs to be far further and faster innovation to develop propositions that capture the interest and behaviour patterns of the Millennial generation • There are continued opportunities for content providers to develop and monetize “must-have” content with strong appeal to the Millennial generations across new and traditional platforms About the authors t Perennial Millennials: Pay TV Under Threat?