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On Demand Is in Demand by Millennials, Motorola Study Shows

Always-on generation influencing buying decisions to accelerate personal media experiences

Motorola, Inc. (NYSE: MOT) today announced the initial results of a new study on the influence and behaviors of the Millennial generation (young adults ages 16-27) regarding consumer technology decisions and rich media consumption habits. Motorola’s study among 1,000 young adults found that Millennials are not only looking for more rich media, they are also greatly influencing the buying decisions for the services and technologies in the home and on the go.

The study, commissioned by Motorola’s Home & Networks Mobility group, explores how the preferences and habits of today’s Millennials are shaping the future of content consumption. By understanding the interests of end users, Motorola will better help cable operators and service providers customize their offerings to accelerate the delivery of personalized media experiences to their current and future customers.

“With the Millennial generation, connectivity is an absolute must-have, as they’ve grown up with technology and the Internet,” said Eduardo Conrado, corporate vice president, global marketing and communications, Motorola Inc. “Millennials are now looking to make their connectivity more personalized and take experiences from ‘primetime’ to ‘my time.’ This study provides a clear barometer to share with our customers that shows the changes in demand and growth opportunities as these critical users continue to increase their buying power.”

Greater Expectations
Motorola’s findings pinpointed the differences in Millennials’ expectations and the influence that they are already exerting over buying decisions of their parents for video and broadband products and services.

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  • 71 percent have influence over parental decisions about cable, DSL or dish-satellite services, including young people who no longer live with their parents.
  • 62 percent have influence over which HDTV set and programming package to buy.
  • 70 percent feel their expectations and demands are far greater than their parents’ for rich media experiences (such as mobile TV or video) and on-the-go broadband access.

High-Definition on My Own Time
Motorola’s research examined current adoption of products and services such as cable TV and high-definition (HD) programming, finding that Millennials are hungry for more control over when and where they access rich content. The ability to time-shift with DVRs and have access to HD programming were both highly desirable features. In fact, data from Motorola’s study demonstrates the growth opportunity for service providers in bringing these services to Millennials who don’t already have them:

  • While 85 percent of Millennials have cable television or satellite television service, 42 percent of respondents still would like a DVR to use along with it.
  • 64 percent of Millennials with a DVR rely on DVR’d content for “quite a bit” to “almost all” of the programs they watch, with almost half of DVR owners using it for half of their TV watching.
  • 46 percent of Millennials already have HDTV, while 43 percent indicate they would like to have it.
  • 73 percent of Millennials with HDTV access “love” current HD programming, while 35 percent of those with HDTV are looking forward to having a broader selection of HD programming offered in the future.

The Content I Want, Wherever I Want it
Millennials further expressed their “on demand” mind-set, indicating they prefer to watch programming or access content on their own terms and timeline, regardless of where that content originated:

  • 84 percent expressed interest in archived TV programs and movies available on demand.
  • 87 percent would find it appealing to watch programming in areas of their home where they don’t have TV.
  • 86 percent have interest in being able to pause a TV program in one room and resume play in another room in the house.
  • 83 percent have interest in the ability to download TV programs from a DVR to a memory device for use on mobile players.

“Our research shows that Millennials want rich media experiences on their own terms, and they are ready for operators and service providers to deliver them now,” said Ray Sokola, chief technology officer, Motorola Home & Networks Mobility. “High demand for bandwidth-intensive HD content and time- and place-shifting solutions represents the new consumer landscape for operators. Motorola is delivering the technologies our customers need to make these services possible today and for the future of the Millennial generation.”

About Motorola’s Millennial Generation Study
Findings are based on an online panel survey among 1,000 members of the Millennial generation in the United States, ages 16-27, April 18–23, 2008. The sample included 500 men and 500 women. Millennials currently account for 17 percent of the total U.S. population. For more information regarding the study, please visit http://www.motorola.com/mediacenter.

About Motorola
Motorola is known around the world for innovation in communications. The company develops technologies, products and services that make mobile experiences possible. Our portfolio includes communications infrastructure, enterprise mobility solutions, digital set-tops, cable modems, mobile devices and Bluetooth accessories. Motorola is committed to delivering next generation communication solutions to people, businesses and governments. A Fortune 100 company with global presence and impact, Motorola had sales of US $36.6 billion in 2007. For more information about our company, our people and our innovations, please visit http://www.motorola.com

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