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What Our TV Viewing Habits Mean for Media Companies

July 6, 2009

By Tobin Smith, Editor, ChangeWave Investing

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Tobin Smith

Tobin Smith

Tobin Smith is the founder and editor of ChangeWave Investing. He also serves as executive editor of ChangeWave MicroCap Investor, and contributes his weekly market outlook and editorial rants to ChangeWave's WaveWire e-letter, which is read by more than 250,000 investors each week.

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Social Networking:
It's Not Just for Teens Anymore

More than half (51%) of survey respondents say they currently maintain one or more profiles on various social networking services.

Nearly three-in-five (57%) of these boomers report they use the networking site LinkedIn.

Another 55% have a Facebook profile.

16% and 12% of respondents have Twitter and MySpace accounts, respectively.

Boomer Interest in Social Networking Has Its Limitations

77% of users reporting they would not be willing to pay a subscriber fee for social networking sites.

Of all the services, LinkedIn is the most likely to attract paid subscribers, but only 7% say they'd be willing to pay a fee if it was no longer available for free.

Social Networking Services

 

Traditional TV vs. Alternative Programming

Among traditional TV viewers, an astonishing one-in-five (20%) say they're likely to downgrade or cancel their current TV service package in the next six months. The likelihood of canceling is highest among cable (22%) and satellite subscribers (22%), and lowest among fiber-optic TV subscribers (7%).

We also asked boomers to tell us which one paid subscription they'd be most willing to give up. Once again, it's TV Service (44%) that appears most vulnerable, scoring significantly worse than any other subscription service.

Subscription Services most likely to be given up

In a finding that suggests boomers still are at the forefront of new media technology adoption, video-over-the-Internet now clearly represents a significant threat to traditional TV viewing. Better than two-thirds of boomers (69%) say they've watched video content on their computer over the past 90 days.

Even more ominous for traditional TV providers was the 48% of respondents who say they'd be willing to pay a monthly fee for a video-over-the-Internet subscription if it provided the same programming currently available on their TV service.

So, where are boomers turning for their online video content?

NEXT: Media Companies Banking on Boomers