[opendtv] eMarketer: TV, Video Habits See Big Changes

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Fri, 7 Mar 2014 00:57:33 +0000

Here's more food for thought for habitually-stubborn Craig. From last May.

The stat that was most surprising to me was that only 60 percent of US Internet 
users have a cable TV subscription. That seems hard to believe, unless they 
really mean cable and not DBS. Also hard to believe, among Internet users, is 
that "another 23% said they had a [MVPD] subscription in the past, but not any 
longer." Sounds like a skewed sample of households, or maybe I've been 
overestimating how many households actually have Internet broadband.

Regardless, I'm quite sure that use of Internet TV can climb even more quickly 
than it has been. I'll bet you that many people who only use OTT sites for 
catch-up, or otherwise only occasionally, do so because they can't figure out 
how to get that content on their big screen TVs. So they put up with the small 
screen for catch-up, and then fall back to their traditional broadcast stream 
for the TV set. But when they figure out how to get the Internet content on the 
big screen, that's when they start questioning their choices and options.

The CEA piece I posted yesterday was a little better informed about the OTT 
sites people actually use. This piece, like many others, tend to lump 
everything under Netflix and YouTube, as if none other exist. For instance, 
according to the CEA piece, the "big driver" was NOT "YouTube and Netflix," as 
this one claims (more out of being imprecise than anything else IMO), but 
rather YouTube, Hulu, and other FOTI sites. Pay-Internet TV was considerably 
lower in popularity than FOTI TV.

Bert

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http://www.emarketer.com/Article/TV-Video-Habits-See-Big-Changes/1009913

TV, Video Habits See Big Changes
May 23, 2013 

With rising OTT viewing, many cut cable

As online video gains viewers, cable TV's losses mount. While 60% of US 
internet users surveyed told AYTM Market Research that they still had a cable 
TV subscription in May 2013, another 23% said they had a subscription in the 
past, but not any longer.

Consumers' inclination to watch cable and network TV as it airs is declining 
fast, while consuming video on non-TV devices and watching over-the-top (OTT) 
content are increasingly becoming regular activities.

In a March 2013 survey, Leichtman Research Group found that 27% of US adults 
watched videos on non-TV devices every day and more than half of respondents 
did so on a weekly basis.

Online video and streaming is also bumping up the connected TV and OTT market. 
The Leichtman study found that in 2013, 44% of US households had at least one 
TV set connected to the internet, up from 38% in 2012. And as more TVs are 
connected digitally, OTT viewing is rising quickly. This year, one-third of US 
adults surveyed reported watching OTT content daily (nearly double what it was 
2 years ago) and 59% said they did so weekly.

YouTube and Netflix are big drivers of the movement to digital and OTT viewing. 
AYTM found that 29% of US internet users surveyed watched YouTube videos at 
least daily in May, and more than half of respondents did so more than once a 
week. Netflix has also seen a big bump in its subscriptions and use. In 2013, 
according to Leichtman, 22% of US consumers surveyed said they streamed Netflix 
weekly-more than five times as many as watched content via Netflix in 2010.

These trends are all pointing in the same direction: Traditional TV viewing is 
on the wane, and digital video is rising fast. But this does not mean that TV's 
role in the media ecosystem is totally diminished. As TV manufacturers and 
networks offer more dynamic viewing options, the nature of how and what US 
consumers watch on TV will continue to change. 

AYTM additionally found that that over half of cable TV viewers said they 
watched less than half of the channels available via their subscription, and an 
overwhelming 74% said they would prefer to choose individual channels rather 
than paying for a whole bundle. As cable and network TV providers strategize 
how to keep consumers tuned in, all options are on the table.

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Read more at 
http://www.emarketer.com/Article/TV-Video-Habits-See-Big-Changes/1009913#6MvHsk38vpo0PRrb.99
 
 
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