Consumers are embracing video-on-demand services like never before, according to a new report by communications technology company Ericsson.
In Canada, 39% of all TV and video viewing hours is now spent watching on-demand. Globally, consumers spend six hours per week watching streamed on-demand TV series, programs and movies—more than double the time spent in 2011. Over half of all consumers watch streamed on-demand content at least once a day, up from 30% in 2010.
Ericsson’s 2015 ConsumerLab TV & Media Report is based on interviews with 22,500 people in 20 markets, including Canada, the U.S., United Kingdom, Brazil and China, with supporting data from on-device measurement and qualitative research.
The report found viewing user-generated content (UGC) is also on the rise: almost one in 10 consumers globally watch YouTube for more than three hours per day, and one in three said it’s important to be able to watch user-generated content on their TV at home.
TRADITIONAL TV IS STILL KEY
While consumers are embracing on-demand viewing, traditional TV isn’t dead yet. According to the report, the popularity of linear TV remains high, mainly due to premium and live content such as sports. The social factor also plays a part: linear TV often acts as a “household campfire,” the report stated.
“There are a lot of components that consumers do appreciate with traditional linear TV, not the least is watching content that your friends, family and colleagues are also watching because then you’ll have something to talk about the day after,” said Anders Erlandsson, senior advisor at Stockholm-based Ericsson ConsumerLab, in an interview with Marketing. “The social component of sharing and discussing is still very ingrained into linear viewing.”
In addition, “there’s the physical social component where you’re sitting together at home,” said Erlandsson. “There are some shows that are bringing the family together.”
THE RISE OF MOBILE VIEWING
The report also found a rising number of consumers prefer the mobile screen. Since 2012, the number of consumers across all age groups who watch video on their smartphones has increased by 71%. The average time spent watching video on mobile devices is up three hours a week compared to 2012.
In Canada, 45% of consumers now watch TV and video on their smartphones. When taking tablets, laptops and smartphones into account, 59% of Canadian teenagers’ total TV viewing time is now spent on a mobile device.
For teens, “the size of the screen isn’t important because they look at which screen is more convenient in any given situation,” added Erlandsson. “Even if they have a bigger TV screen on the wall in their bedroom, they might still use their smartphone because it’s actually in their hand and they’re using it for all their other social media communications. It’s simply more convenient for them.”
Smartphone viewing is driven by short video content, with 33% watching user-generated content. But subscription VOD services are creating an impact, too. One in five watch longer on-demand content, such as movies and TV shows, on their smartphones.
PAY TV IS TOO EXPENSIVE
One in four consumers has cut or reduced their traditional TV service in the past year—a number unchanged from 2014.
The main reason consumers cut the cord is they find pay-TV packages too expensive. Globally, 47% of consumers who have reduced or eliminated pay TV did so to save money. Thirty-three percent said they don’t watch enough TV to justify the cost, 17% said they’re using other free TV/video internet services like YouTube, and 16% can’t find a suitable package or customize their own package.
Only 11% said they cut the cord because they subscribed to a video streaming service such as Netflix or Amazon Prime.
