The firm found that adult broadband users between the ages of 20 and 35 feel little need for a traditional cable, satellite or telco-TV service. About three-quarters of them believe that SVOD services play a key role in their decision to forgo legacy pay-TV (answering five or greater on a seven-point scale). And two-thirds of them rank this factor as very relevant (six or greater) in this decision, with half ranking it as extremely relevant (seven).

“The choice to live without legacy pay-TV is undoubtedly multi-dimensional," said Michael Greeson, director of research at TDG. "High costs, poor value and the availability of substitutes all play a role in this decision. Yet while cost of service has long been the dominant factor driving millennial cord-nevers, the availability and sufficiency of SVOD now ranks as equally important.”

Greeson noted that, of the 81% of millennial cord-nevers that use SVOD, more than nine in ten believe the services are sufficient to meet their video needs.