Swimming Upstream to Reach Millennials

June 2, 2014  |  Jacquelyn Gozdowiak

Thinking Big

Last year, digital track sales dipped 6% – the first ever down year*. Yet music streaming was up 32% last year. Not surprising. Millennials no longer buy, they rent. And because Millennials are the current trend setters, society has seen a shift occur over the last handful of years.

Purchases and contracts are being swapped out for the non-committal freedom of renting and streaming. Jobs are fleeting. Why should Millennials be locked into a 30-year mortgage where their job may not exist in 3-5 years? Or with tech shifts, why buy and then have to re-buy your entertainment every couple of years because of the next medium du jour? After all, how many times have you re-purchased “Star Wars” over the last few years?! And throw in Netflix and Hulu’s impact on big cable. A flexible $10 monthly subscription that you can opt out of the second you get the new tech itch is certainly more alluring than that “2 Year Price Lock Guarantee!” contract you can’t break with big cable without paying an early termination fee, even though your provider dropped your favorite basic cable station in the middle of your contract. It’s also why most won’t spend $5 for an app, but they’ll buy more than that through in-app purchases from those same free apps. Who wants to pay $5 for an app without knowing whether they’ll like or even continue to use it past the first five minutes? But if they’ve been using it steadily the past week and are offered additional benefits for another dollar here or dollar there? Suddenly there isn’t that same anxiety.

So of course streaming services are a hit. Monthly streaming services have earned the inherent trust of the Millennials, who want the freedom to walk away if you let them down. And because their commitment isn’t required, Millennials have put the onus on the providers to commit to service and continued improvement in order to maintain their satisfaction and therefore hold onto their business. Seems fair. When a company has earned that trust and delivers, as Netflix has proven, Millennials have rewarded them with their continued long term loyalty.

................................................

Get updates from The Current

Which topics interest you?

Public Service
Travel & Tourism
Healthcare
Education
Recreation & Lifestyle
Consumer & Retail
Financial Services
Thinking Big
Submit

More from The Current

June 27, 2022

Travel Insights: Values in Travel

Pretty sure it was John Mellencamp who sang, “You gotta stand for something or you’ll fall for anything.” Heckuva marke...

May 25, 2022

The travel industry’s biggest buzzword – “values” – is misunderstood.

In 2021, Destinations International unveiled its Futures Study, the guidelines which at least to some extent, have become a B...

April 26, 2022

Travel Insights: Future Travel

As the world around us continues to change and we head into the second quarter of another year, the travel industry is on the...

April 5, 2022

Summer 2022 Travel: Opposition and Opportunity

Remember those high school science classes in which a teacher would encourage you to pour a test tube filled with one liquid ...

February 22, 2022

Travel Insights: Sustainability

Raise your hand if you’re feeling a little bit sustainability’d out. Like us, you’re probably hearing it everywhere, fr...

January 25, 2022

Travel Insights: Resolutions and Travel Solutions

Every year in December, our inboxes are flooded with emails and articles about New Year’s resolutions. Lose this, save that...

December 21, 2021

Top Trends 2021 – Now & Next

As the second pandemic year, 2021 was characterized by resilience, reprioritization, and reactions. Americans made shifts in ...

November 23, 2021

Travel Insights: Holiday Travel

After nearly two years of paused travel plans and cancelled get-togethers, Americans are eager to venture out this holiday se...

October 26, 2021

Travel Insights: Hispanic Traveler Audience

The Hispanic population is one of the fastest growing audiences in the United States, growing at 23% since 2010, and currentl...