Netflix remains solidly in growth mode, while use of the internet as an exclusive source for TV content is gaining traction according to the newest report from Media Technology Monitor, which gives an indication of which media formats are on the rise and which are ceding territory.
The growth of online TV has come at the expense of cable, which has declined from 60% of Anglophone households in 2008 to 43% in 2014.
The new Media Technology Adoption report groups technology into five stages:
• Innovation – new technologies that are owned and used primarily by early adopters
• Emerging – technologies that have caught the eye of “visionaries” who see their value, but have not yet been fully adopted by their target audience
• Expanding – technologies that are being acquired by their target audience and whose value proposition has become clear to interested consumers
• Maturing – technologies adopted by remaining consumers who see merit in their usefulness
• Declining – technologies whose penetration has peaked or is declining, and are seeing replacement technologies take hold
The report identified three “emerging” technologies (Online-only TV, Apple TV and social TV), while expanding technologies included Netflix, internet TV, smart TVs, PVRs and tablets. Maturing technologies include streaming audio, smartphones, digital TV and Internet video.
All of the technologies identified by MTM as declining are related to traditional TV, including cable and satellite TV subscriptions, analog TV and over-the-air TV.
According to MTM, about 9% of Anglophones 18+ now watch TV content exclusively online, up from 3% in 2010 and 5% in 2012. Slightly more than 10% of Anglophones have Apple TV, which allows them to access content from iTunes, YouTube, Netflix and other online sources and deliver it to their TV set. Apple TV’s penetration has grown by 38% in the past year.
The growth of online TV has come at the expense of cable, which has declined from 60% of Anglophone households in 2008 to 43% in 2014. Satellite has been similarly affected, falling to 20% of Anglophone households from a high of 27% in 2011.
While the report identifies social TV as growing, it remains a “niche” activity with only 11% of Anglophones commenting on a TV program via a social network while they are watching. Facebook remains the preferred destination for those who do comment during a TV program.
The study shows approximately 12% of Anglophones have “tuned out” from traditional TV, while the use of video-on-demand has “stabilized” at around 16% with the advent of competing services such as Netflix and the PVR.
An estimated 38% of Anglophones currently subscribe to Netflix, and MTM predicts that the service will continue to grow as its library increases in size and it commissions more original content. The report says that despite the introduction of tiered pricing for newer members, the subscription cost isn’t enough to deter new customers.
Roughly half of Anglophones (47%) watch TV content online, with the incidence of watching TV shows and clips online increasing 12% since fall. Nearly 80% of people who watched online TV in the past month have watched a full episode.
It also identifies satellite radio as a maturing technology that has either reached or is close to its market saturation level, present in approximately 19% of Anglophone households.
The report also indicates that the new generation of gaming consoles has done little to increase overall penetration, with console ownership holding steady at around 47% for the past two years. It theorizes that the people who bought the PlayStation 4 or Xbox One likely already owned a previous generation console.
MTM also identifies tablets as an expanding technology, owned by approximately 51% of Anglophones. The Apple iPad is by far the most popular tablet, accounting for nearly two thirds of tablet ownership.
