Today at the Code Conference in Rancho Palos Verdes, California AT&T’s CEO Randal Stephenson opened up about cord cutting and DIRECTV’s recent losses. According to Randall Stephenson most new cord cutters in 2017 were millennials and primarily lived in apartment buildings.
Well, it may be true that most of DIRECTV cancelations maybe coming mainly from Millennials but I would be very interested in learning the exact breakdown. Currently, Millennials are considered anyone born between 1981 and 1996. That would mean that the first group of millennials are now 37 years old and will soon be turning 40. Is this flood of new cord cutters coming from 20 somethings getting out of college or is this a flood of 30 somethings with kids?
According to a story in The Atlantic the average first time house buy is between 31 to 32 years old. (Far older than it was a few years ago.) Some studies have suggested that many Americans make the jump to become a cord cutter when they move. It is very possible that as Millennials are buying homes now in their 30s that they are deciding not to move their DIRECTV service to their new homes in an effort to save money. The fact that most DIRECTV cancelations come from people living in apartments and are Millennials could be seen as support for the idea that when people move they are far more likely to become a cord cutter.
No matter what way you look at this it is terrible news for cable TV executives. As Millennials will soon be in their 40s cord cutting is only going to continue to grow and with home sales climbing this will likely help push the growth of cord cutting.
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