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Generation Wireless: Wireless companies – we want our video and we want it now!

Editor’s Note: Looking to bring a younger perspective to the mobile space, RCR Wireless News’ has tapped Jeff Hawn to provide insight into what’s on the minds of the tech-savvy youth of today.

In the year 2000, 98% of American households had a television set with close to 80% of those having some form of cable. Now, 14 years later ABC is reporting that 18.1% of American households have “cut the cord” with the number of cord cutters rising by 44% in the last four years.

Cord cutting is by no means unique to one demographic. However, a survey conducted by Mediapost found that 67% of cord cutters were under the age of 35. Cord cutting is certainly popular in my own 30 and under crowd, and I count myself among those who have ditched cable in favor of receiving all of my entertainment from the Internet, and my Internet provider Verizon, American’s No. 2 wireless telecom company. A Verizon customer service representative asks me, usually when I try to pay my bill, why I don’t want cable or TV? The answer, which I usually give to their great consternation, is in three parts and I believe indicative of the answers most cord cutters will give you.

The first reason I have no desire to have cable TV is cost. Although it varies nationwide, the monthly cost of a basic cable package in the Northern Virginia-area starts at roughly $90 per month, and gradually increases based on whether you have premium content such as the ever popular HBO and AMC, or bundle it with a old fashion telephone landline.

I have recently graduated from college and I am limited by my financial means. Moreover, I’m part of a generation that collectively holds more than $1.2 trillion dollars in student debt, and who have graduated into an economy that although has improved is still deeply scarred by the financial crisis. Thus, many of us under 35s (I do not care for the term “millennial”) are competing for jobs with people on their second and third careers. We have found to our chagrin that firms often prefer older, more experienced workers who are less likely to leave after two or three years. This forces many of us to head straight back to school and continue to pile on the debt. At this point, the economic argument is self-explanatory. Why pay $90 for cable when that money could be put toward more vital things such as interest on student loans, rent or food.

Just because the under 35s aren’t watching TV doesn’t mean their not watching videos. Ninety-four percent of American adults watch some form of video on a daily bases, myself included. This brings me to part two of my answer: convenience. By paying a combined total of $16 per month, I and some 40 million other Americans are able to access all of our favorite video content via video streaming companies like Netflix and Hulu. Moreover, we can watch these videos anytime we wish, wherever we wish, and on any device we wish. Netflix and Hulu have been quick to embrace the wireless revolution allowing customers to view all their favorites shows on their computer, Xbox, tablet and smartphone. Some people may argue that this form of viewing means we have to wait extra time for the video content we want to be released on these services.

Which brings me to part three of my answer as to why I, and millions like me, have cut the cord and become part of the video watching culture. I find I cannot actually watch TV anymore. It’s 22 to 54 minutes of content interrupted by five to six minutes of commercials, and the shows are scheduled to play on weekday nights. I can’t be bothered to give up my Wednesday evening watching a choppy presentation of “Agents of S.H.I.E.L.D” intermixed with Viagra commercials. I much prefer to lie on my bed on a lazy Saturday and watch the entire season in one sitting. The rise of binge viewing, as it’s called, goes hand and hand with a generation use to instant gratification.

Having explained my reasoning to the now confused and flummoxed Verizon customer service representative, they usually respond by asking if I’m sure I don’t want to hear about their cable package. The answer is a resounding “yes!” I’m sure, and it would be wise of Verizon and AT&T to start looking at ways to package their Internet offerings in a more attractive setting. Verizon is off to a good start with its FIOS service, which delivers the high-speed Internet we cord cutters rely on. However, there are gaps in the coverage (I have to make due with good old-fashion dial up). Yet the market and the indicators are there – the future of video providing is wireless. It is now just up to America’s wireless providers to recognize that.

Jeff Hawn was born in 1991 and represents the “millennial generation,” the people who have spent their entire lives wired and wireless. His adult life has revolved around cellphones, the Internet, video chat and Google. Jeff has a degree in International Relations from American University, and has lived and traveled extensively throughout Europe and Russia. He represents the most valuable, but most discerning market for wireless companies: the people who have never lived without their products, but are fickle and flighty in their loyalty to one company or product. He’ll be sharing his views – and to a certain extent the views of his generation – with RCR Wireless News readers, hoping to bridge the generational divide and let the decision makers know what’s on the mind of this demographic.

ABOUT AUTHOR

Jeff Hawn
Jeff Hawn
Contributing [email protected] Jeff Hawn was born in 1991 and represents the “millennial generation,” the people who have spent their entire lives wired and wireless. His adult life has revolved around cellphones, the Internet, video chat and Google. Hawn has a degree in international relations from American University, and has lived and traveled extensively throughout Europe and Russia. He represents the most valuable, but most discerning, market for wireless companies: the people who have never lived without their products, but are fickle and flighty in their loyalty to one company or product. He’ll be sharing his views – and to a certain extent the views of his generation – with RCR Wireless News readers, hoping to bridge the generational divide and let the decision makers know what’s on the mind of this demographic.