NAB
Consumers are so
overwhelmed by the choices of content that discovering it has actually become a
bigger headache than paying for it.
article here
A new Video
Trends Report from TiVo also finds that a majority of North Americans say
they have too many services in their bundle and that the rate of change at
which content jumps in and out is outright damaging to their overall viewing
experience.
“We’re at an
inflection point in the digital entertainment industry as consumers seek to
take advantage of the flood of content choices and service types available, but
now wrestle with the paradox of choice,” explains Scott Maddux, VP of
global content strategy and business at TiVo owner Xperi.
While SVOD use has declined by more than a quarter in the last six months, the average number of video services used by consumers has grown, with free and ad-supported streaming becoming the beneficiaries. Per the report, consumers source their video viewing from an average of 11.6 services up from 8.9 a year ago.
Adoption of totally
free video services, including AVOD and FAST, has grown by almost 70% year over
year. Some 64% of consumers now use at least one AVOD or FAST service, driven
largely by millennials, up from 60% a year ago.
Subscribers to
pay-TV use a significantly higher number of sources on average, at 12.7,
compared to an average of 8.3 services for broadband-only respondents (i.e.,
cord-cutters).
Video choices in
this report range from broadcast TV and “virtual multichannel video programming
distributors” (vMVPDs) such as YouTube, Pluto TV, and Sling to social media
apps and AVOD.
The number of
choices may benefit consumers, but it has led to content discovery becoming
even more complex and varied. Frustration is boiling over. It is not only about
having too many options to juggle and not being able to find suitable content
quickly, it is also expressed in how frequently movies and TV shows appear and
disappear (or shift from free to pay) on the services they subscribe to.
Right now, almost
half of survey respondents find new TV shows and movies by word of mouth
(47.9%) or through ads seen on other shows they watch (46.5%). From there, just
over a third (35.6%) turn to social media, and about a third (32.2%) rely on
display ads on the home screen of online video services. Suggestions in “my TV
channel guide or other menus” is cited by just over a quarter (27.1%) of those
surveyed, and more than half (55.9%) of those who follow recommendations to
find content say they’re satisfied with the suggestions.
Some people are
willing to “actively teach” a streaming service about their preferences to get
better recommendations. Pay-TV subscribers are more likely to do so (60.3%),
compared to broadband-only subscribers (47%).
Spend on Video
Continues to Rise
The bigger picture
for video entertainment providers is that despite the cost of living crisis,
demand for content remains a “moderate to high priority” for most people.
Overall spending on entertainment has actually increased to $189.38 per month.
This is up almost $20 from a year ago.
While some (17%)
respondents appear to be evaluating and adjusting their entertainment spending
more often, and more than 30% claim that the wider cost of living has caused
them to reduce overall entertainment spend, a massive 84.8% say they have no
plan to reduce their entertainment spend or don’t know whether or not they will
reduce their entertainment spending.
Much of this spend
is being focused in the home and on the home TV. To support this, respondents
to TiVo’s report says they are investing in their home setup, with one-third
purchasing a new TV in the last six months.
Additional
interesting information from the Video Trend Report:
More than half of
people (53%) prefer to binge watch a whole season of a TV show when all
episodes are dopped at once, compared to 24.7% who prefer episodes to be
released once a week.
Fewer than half of
respondents cite pay-TV as their primary way of watching local content, the
first time this has dipped below 50% in a TiVo survey.
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