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Most Millennials still pay for TV
MUMBAI: While it’s not startling that Millennials (consumers in the 16-24 year-old age group) watch a lot of TV online, it might be more unexpected that the vast majority of them haven’t cut the cord, according to a new study (PDF) from Verizon Digital Media Services (VDMS), the company’s cloud video unit.
As a group that translates to multiple screens and represents about 21 per cent of total consumer spending, Millennials spend three times as much of their TV time watching online – 34 per cent versus 12 per cent among non-Millennials, VDMS found in a study that surveyed 1,000 consumers (800 Millennials and 200 non-Millennials) and based its findings in part to in-home interviews with eight selected Millennials.
But 75 per cent of the Millennials surveyed haven’t cut the cord and still pay for TV through a traditional MVPD, the study revealed. And most (64 per cent) also pay for an online streaming subscription, versus 33 per cent of surveyed non-Millennials. Only 14 per cent of the Millennials surveyed said they had never watched TV from an online source, versus 44 per cent among non-Millennials.
Here is a look at how the Millennials surveyed broke down their total TV distribution time, 41 per cent was for live TV, 34 per cent online, 15 per cent on the DVR, and 10 per cent using VOD.
But broadcasters could have some reason for concern. While Millennials are generally brand loyal, not a single broadcast network made the top ten list of brand loyalties among the Millennials surveyed, VDMS said.
According to the survey, the top 10 brands among Millennials were: Amazon, YouTube, Facebook, Google, Walmart, Netflix, Apple, Microsoft, McDonald’s, and Samsung. Verizon was 16th.
Among other findings: 40 per cent of Millennials want access to live TV online, 40 per cent want 4K/Ultra HD video, 25 per cent want device and session shifting, and 19 per cent want interactive TV.
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Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
