Wait again, sorry. Let me slightly revise this last:
The 60% for boomers category was called "paid/satellite/direct TV," to be
exact, which I now have to believe means, in a confusing way, traditional MVPDs.
Which brings up another interesting point, since Craig keeps asking.
Hey Craig, remember when you kept asking when MVPD usage would reach 80%, and
then you revised it to 50%? Well, uuuh, it has passed both points already! To
be exact, 60% for boomers still, but only **35%** for millennials. Using their
numbers for demographic breakdown, the weighted average, boomers and
millennials, is down to 47.5% using traditional MVPD service.
Okay, so the smaller demographic, Gen X, isn't included. That might bring the
number closer to 50% still tied to the legacy umbilical.
Oh well, huh? Are you going to insist on 40% now? 30%?
Bert
-----Original Message-----
From: Manfredi, Albert E
Sent: Thursday, October 19, 2017 15:02
To: opendtv@xxxxxxxxxxxxx
Subject: TV Technology: Viewer Preferences Straddle Generations
Figure 1 is very interesting. Supposedly, the majority of boomers (60%) cling
to DBS, while the biggest percentage of millennials, but that's only 41%, use
SVOD as their primary TV fix. Millennials spread out their preferred TV sources
more than boomers do.
And just as interesting, supposedly only 2% of boomers use FOTI as their TV
source, while 24% of millennials use FOTI as their TV source! That's a
combination of FOTI online-only programming and FOTI TV network programming,
12% each. Message: The trend line is toward online TV, duh, and FOTI is hardly
going to be an afterthought in the future.
Another very telling stat: 30% of boomers use "free network TV" as their TV
source, compared with 2% that use FOTI. I assume "free network TV" means FOTA.
But among millennials, this FOTA category doesn't even show up. My take is,
boomers haven't figured out how online streaming works yet, e.g. haven't
figured out that the networks have their stuff online, while millennials
haven't seen the need for FOTA at all. Ouch, for ATSC 3.0.
But I have a problem with the implication that just because "We found that most
Baby Boomers still prefer a 'traditional,' quality-focused viewing experience,"
that "quality experience" keeps them tied to legacy MVPD models. On the
contrary. "Quality" is originating online more quickly than it is with old-time
distribution methods, and/or by-appointment viewing. Plus, importantly, if
"quality" only comes with viewing at home, that is not mutually exclusive with
online TV.
In short, there is no reason to believe that the "quality" viewing experience
is anywhere else than online. Not for some time. Especially when you see this
stat:
"Our research also uncovered that for nearly 90 percent of all respondents,
home remains the most popular place to watch TV. Compared to their parents,
Millennials are nearly 20 times more likely to watch TV on the go. Millennials
are also quite comfortable 'cutting the cord,' with more than half (53 percent)
reporting they most frequently watch online channels. Just 10 percent of those
55+ say online viewing is their top TV service."
So, home remains the most popular place to watch TV for everyone, where online
TV and "quality" are available at the same time. Not sure what on-the-go TV
means exactly. Whether its traditional episodic TV, or whether they're talking
more about videos.
Bert
-------------------------------------------
http://www.tvtechnology.com/resources/0006/viewer-preferences-straddle-generations/282022
Viewer Preferences Straddle Generations
Survey shows boomers prefer quality, Millennials like convenience
October 19, 2017
By John McCoskey
ARLINGTON, VA.-Perhaps the biggest challenge facing the TV industry is meeting
the rapidly changing preferences of viewers. In fact, research reveals that
shifting consumer preference trends are moving even faster than expected. More
specifically, there seems to be widening chasm when it comes to consumer
preferences on viewing convenience versus quality.
This "quality versus convenience" chasm presents a key strategic question for
TV executives-how and where does a company invest when trying to meet the needs
of myriad consumer segments with vastly different viewing habits and
preferences?
Fig. 1: According to Eagle Hill Consulting's media survey, the majority of Baby
Boomers get their television via traditional multichannel video program
distributor while Millennials prefer OTT.
TRADITIONAL VERSUS NEW
To understand the preferences issue at a deeper level, Eagle Hill Consulting
surveyed more than 1,000 adults across the U.S. on their TV viewing trends and
preferences. Some of what we learned was expected. Some of the findings were
surprising.
Let's look at age.
Already, Millennials have surpassed Baby Boomers as the nation's largest living
generation, with those ages 18-34 numbering 75.4 million in 2015 compared to
74.9 million Baby Boomers (ages 51-69). We found that most Baby Boomers still
prefer a "traditional," quality-focused viewing experience. We also found that
Millennials are more likely to value convenience over quality. In fact,
convenience is four times more important for viewers 18-34 than for those 55
and older. No surprise, right?
But what happens when you factor in race?
We were surprised to find that when looking across all age groups, nearly twice
as many nonwhite respondents (36 percent vs. 20 percent) say they prioritize
convenience over quality. That has major implications for TV technology
strategy because the nation's population is becoming increasingly diverse. Pew
Research predicts that by mid-century, the United States will have no racial or
ethnic majority group. Instead, we will have a "minority majority" with whites
making up less than half of the population. For this growing non-white
population, a focus on convenience clearly is an important factor as executives
develop their technology strategy.
Our research also uncovered that for nearly 90 percent of all respondents, home
remains the most popular place to watch TV. Compared to their parents,
Millennials are nearly 20 times more likely to watch TV on the go. Millennials
are also quite comfortable "cutting the cord," with more than half (53 percent)
reporting they most frequently watch online channels. Just 10 percent of those
55+ say online viewing is their top TV service.
A DELICATE BALANCE
So why does all this matter? Nielsen research indicates that average time per
day watching video keeps increasing while traditional TV consumption continues
to decrease. That means that companies must make tough decisions on the best
technology investments when serving multiple audiences with diverse habits and
preferences. Much of the technology investment in recent years has been
directed toward the quality side of the equation.
The industry has been moving to Ultra-HD, high dynamic range, wide color gamut,
high frame rate, and immersive audio-all serving to increase the quality of
content. However, it's a delicate balance between investments in video quality
versus the expense of convenience. We must retain an equal focus on serving
viewers where they want to consume content, often in environments where these
quality enhancements just don't matter. Companies that are thoughtful and
strategic will find a way to straddle both-making investments that will pay off
now and as trends evolve and accelerate.
Here are a few approaches companies can consider as they try to straddle the
viewing quality and convenience chasm:
Get nimble and get moving. You don't need all the answers to act and you don't
have to start with a big bang. No matter where you are today, begin by getting
your house in order: examine current workflows. Weed out duplicative processes.
Find opportunities to simplify, consolidate and virtualize your infrastructure.
Making your operations more efficient means you have more resources to devote
to content-and position your organization for growth.
Shift your business model. Still thinking of your organization as a broadcast,
online and/or wholesaling business? Truth is, you're in the content business.
Your organizational culture needs to evolve to reflect that. Encourage people
to think in new ways, embrace and manage change, ask tough questions and tackle
complex problems. How would you build your business today if you were to start
from scratch?
Think about how you're serving segments. Content is no longer a mass-market
business. With diverse audiences, growing competition and an abundance of
brands, content looks more like a consumer business. As you shape your
organization, look to consumer industries for lessons in understanding and
building relationships with customers. One possibility: appointing a Chief
Segment Officer responsible for analyzing each segment's needs and helping to
craft the kind of viewer experience that delivers both quality and convenience.
Twenty years down the road, there will be new technology disruptors we don't
even anticipate today that will create new chasms. But for today, TV executives
can take proactive measures so they aren't swallowed up by today's wide gulf on
viewers' convenience and quality preferences.
John McCoskey is Industry Lead Executive-Communications, Media & Technology at
Eagle Hill Consulting.
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:
- Using the UNSUBSCRIBE command in your user configuration settings at
FreeLists.org
- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word
unsubscribe in the subject line.
