Seven in 10 TV Viewers Stream Programming - Streaming Poised to Dominate
Streaming Devices Poised to Dominate Viewing Preferences
As Seven in 10 TV Viewers Stream Programming
Second NATPE||Content First and Consumer Electronics
Association content delivery study shows live TV decline, rise of multi-screen
viewing
1/08/2015 02:44:16 PM
Las Vegas, Nev. (January 8, 2015) – While the television
continues to provide the best quality picture and viewing experience, the way
content is being discovered and consumed is changing dramatically, especially
for millennials. According to the preliminary results of the second
NATPE||Content First and the Consumer Electronics Association (CEA)® joint
research study on consumers’ attitudes toward television viewing, just 55
percent of millennials use TVs as their primary viewing platform, while
streaming devices – laptops, tablets, and smartphones – are poised to dominate
their viewing preferences.
CEA and NATPE commissioned the study, conducted by E-Poll
Market Research, to evaluate the TV content distribution landscape, explore the
dynamics at play against the background of exploding consumer choices and
determine how consumers find TV content and view it across different platforms.
The initial findings were released today during a panel session held at the
2015 International CES®. Owned and produced by the Consumer Electronics
Association (CEA)®, the 2015 CES, the world’s gathering place for all who
thrive on the business of consumer technologies, runs January 6-9, in Las
Vegas, Nevada.
“Our study confirms that the paradigm for TV content
discovery has changed dramatically with increased availability and use of TV
content streaming options,” said NATPE President & CEO Rod Perth. “With
more than seven in 10 viewers in broadband households having streamed
full-length TV programs in the past six months, there are opportunities for
networks and content producers to reach and build audiences.”
“While the vast majority of consumers continue to watch
television programming on their TV, many consumers, particularly millennials,
increasingly are turning to a variety of devices to view their TV content,”
said CEA President and CEO Gary Shapiro. “This has profound implications for
the way CE manufacturers market their products as they try to reach diverse
markets.”
Although many viewers of streaming programs say they are
watching more TV programs overall, the joint study shows a decline in the
amount of time spent watching live television programs during their scheduled
air time. This is particularly true of the younger, millennial demographic
which has some distinctive, common characteristics, including the regular use
of multiple sources of program content.
Among the study’s findings:
· Millennials flock to streaming. The millennial
demographic group - age 13 to 34 - is comfortable using many different sources
of TV program content and consequently are significantly more likely to consume
full-length TV programs from a streaming source (84 percent streamed in the
past six months) than live TV programming at its original air time (54
percent), or recorded content from a DVR (33 percent).
· Millennials value their Netflix subscriptions more than
broadcast or cable. Millennials value their ability to stream content above
cable or broadcast channels. The ability to choose what they want to watch when
they want to watch it is of high value to all three generational groupings, but
particularly among millennials. In the study, 51 percent consider subscription
to Netflix “very valuable,” compared to 42 percent for broadcast channels, and
36 percent for cable subscriptions.
· Gen Xers love video on demand and DVRs. Gen Xers tend
to be the heaviest users of their cable/satellite/telco time shifting offerings
including video on demand (VOD) and DVR. Among those in this age group who have
access to VOD, 76 percent use their VOD service once a week or more often,
similar to SVOD usage. The study found DVRs are primarily used to avoid
commercials, while VOD is for convenience.
Multi-Screen Viewing Grows
The study found increased multi-screen viewing of TV
programming is a central factor in reaching younger target audiences. While the
TV set is still the most commonly used device for watching TV programs, among
the millennial group there are some distinct differences in their use and
preference for multiple screens. Among these findings:
· Portability is the trend. About half of millennials say
they watch TV programming on a laptop, and for 19 percent, it’s their preferred
TV viewing screen. Another 28 percent watch television on a tablet and 22
percent on a smartphone. Portability and the ability to watch anywhere is a key
benefit in their use of multiple screens due to a greater comfort level with
smaller screen sizes compared to older generations.
· Millennials shifting to devices rather than TVs. While
nine in 10 viewers say they watch TV programming on a television set, millennials
are significantly less likely to do so (85 percent). In terms of preference,
only 55 percent of millennials select a television set as the preferred screen
for viewing television content.
The full study and additional findings will be released later
this month at the NATPE||Miami conference (January 20-22, 2015).
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