12% of 18-34 year-olds in the U.S. are now subscribing to a skinny bundle such as Sling TV, DirecTV Now, YouTube TV, Hulu with Live TV or PlayStation Vue, according to new research from Leichtman Research Group. This group accounts for 53% of adults who subscribe to a skinny bundle. Just 3% of people 45+ take a skinny bundle.
The data is part of LRG’s first survey on the topic, so there aren’t any trend lines available. Skinny bundles have been around for several years, and multiple analysts have estimated there are somewhere between 4-5 million U.S. homes now subscribing. It’s still very early days for skinny bundles as there’s been very little mass marketing to date.
Categories: Skinny Bundles
Topics: Leichtman Research Group
The average 45 year-old may not think they have a lot in common with the average 15 year-old, but according to the newly-released 12th edition of Deloitte’s Media Trends Survey, it turns out they do. In fact, Deloitte has concluded that the media consumption behaviors of Gen Z (14-20 year olds), millennials (21-34 year-olds) and Gen X (35-51 year-olds) is actually converging, causing the firm to firm to dub the combined group, “MilleXZials.” This group’s behaviors are increasingly distinct from Baby boomers (52-70 year-olds) and Matures (71+ year-olds).
Cord-cutting is accelerating, and there’s a simple, unsurprising reason why: pay-TV service is just too expensive. For the fifth quarter in a row, that’s the finding of TiVo’s Online Video & Pay-TV Trends Report. In Q4 ’17, in response to the question “What factors influenced you to cancel your cable/satellite service?” the price/too expensive answer grew by 6.6 percentage points vs. Q4 ’16 to 86.7%, its highest level ever.
Price/too expensive is by far the most important reason, with the second reason, “I use an Internet streaming service” at 39.7%, actually down 8.6 percentage points vs. Q4 ’16. Next was “I use an antenna to get the basic channels on my TV, at 23%, down 4.2 percentage points vs. Q4 ’16.
The top 13 pay-TV operators in the U.S., which represent around 95% of the total market, lost nearly 1.5 million subscribers in 2017, double 2016’s loss of 760K subscribers, according to Leichtman Research Group. However, the loss would balloon to nearly 3.1 million subscribers after deducting the 1.6 million skinny bundle or “vMVPD” subscribers that were added in 2017. The 3.1 million multichannel subscriber loss is about 62% higher than the 1.9 million lost in 2016. The top 13 pay-TV operators ended 2017 with approximately 92.2 million subscribers.
Topics: Leichtman Research Group
New research from SpotX reveals an expected shift in advertising spending from TV to OTT over the next 2 years. The research was conducted by Kagan among 41 U.S. pay-TV operators, OTT providers, content owner and advertisers. Just 11% of advertisers reported spending 21%-40% of their budgets on OTT today, but that’s expected to rise to 67% doing so in 2 years. Meanwhile, 33% said they currently spend 21%-40% on TV, but that’s expected to drop to 22% in the same time frame.
Earlier this week I wrote about how Facebook’s New Feed algorithm change is going to reduce video consumption, but now new research from Wochit reveals that publishers’ video views were already declining in the second half of 2017. This could reflect that algorithm tweaks were already underway prior to the announcement last week.
According to Wochit’s 2017 Social Performance Index Report, which analyzes 33,000 different videos created by nearly 300 publishers which appeared on over 500 Facebook pages in 2017, views per publisher video declined by 8% in Q3 ’17 and by 15% in Q4 ’17. These declines reversed the growth in views that occurred in the first half of the year.
Categories: Social Media
Almost 75% of 18-34-year-olds use SVOD services at least once per week to watch movies and TV shows, with 40% watching daily, according to new research released by consulting firm Altman Vilandrie & Company. In addition, 40% of 18-34-year-olds use SVOD services daily. 78% of them have at least one SVOD subscription, with 55% having more than one.
These SVOD services are becoming the go-to source for younger viewers, with 77% of 18-24-year-olds using them first when they don’t know what they want to watch instead of broadcast or cable. Younger viewers rely most on peer recommendations for what to watch. Conversely, when viewers over 55 aren’t sure what to watch, 65% of them first turn to broadcast or cable.
Topics: Altman Vilandrie
We’re all consuming more and more video in our personal lives, so it’s no surprise that businesses are realizing that they too should be using video to connect with target audiences in multiple ways. To get a better sense of how businesses are scaling up their video efforts, Wistia, a platform for business videos, released its first “State of Video for Business” report.
Wistia has over 300,000 business customers in 50 countries which uploaded 6.7 million videos so far in 2017 totaling nearly 60 million minutes. Total minutes uploaded have increased from 18.1 million in Q1 to 21.3 million in Q3. There are lots of different internal and external ways that businesses use video these days, and in Wistia’s gallery, 5 main categories are identified with examples of each: Marketing, Support, Sales, HR/Culture and Product.
TiVo has released its Q2 ’17 Video Trends Report, finding among other things that satisfaction with the value of pay-TV among subscribers noticeably increased over the prior quarter even as price remains a major concern, and a driver of cord-cutting.
TiVo found that 31.2% of subscribers said they’re “very satisfied” with the value of their pay-TV service, up 7.5 percentage points vs. Q1 ’17 and 11.6 percentage points over the past 2 years. Another 52.9% of subscribers said they’re “satisfied,” roughly flat with Q1 ’17. Respondents saying they’re “unsatisfied” dropped 6.9 percentage points vs. the prior quarter to 15.9%.
Last Wednesday I shared research highlights from Adobe and Limelight showing how millennials and younger audiences are shifting their viewership to online sources. Later that day I noticed new data from Pew Research that adds to the theme and clarifies the big generational divide that is opening up over pay-TV subscriptions.
According to Pew, 61% of 18-29 year-old Americans it surveyed say that streaming services are the primary way they watch TV, vs. 31% cite pay-TV and 5% cite a digital antenna. 18-29 year-olds are the only age group where streaming surpasses pay-TV. Even one age group up, 30-49 year-olds still favor pay-TV over streaming, 52% to 37%. For older Americans, it’s even more skewed: for 50-64 year-olds, it’s 70% to 10% and for 65+ year-olds, it’s 84% to 5%. Overall, pay-TV is the primary way to watch TV for 59% of Americans, compared to 28% for streaming and 9% antenna.
Video ad tech provider Extreme Reach has released its inaugural Benchmark Report for video advertising for Q2 ’17, finding, among other things, that video ad completion rates, viewability and time spent have all increased over the past year. For everyone in the industry, these numbers are encouraging signs that video ads are maturing and resonating with audiences, which will in turn help drive more spending.
Key highlights of the new report include:
Topics: Extreme Reach
U.S. adoption of Netflix, Amazon Prime and/or Hulu is up to 64% of homes, an increase from 47% in 2014, according to Leichtman Research Group. Of those who have one of these SVOD services, 51% now have more than one of them, up from 35% in 2014.
On our podcast last week, Colin and I talked about how the number of people taking multiple SVOD services has become a central trend in the industry and is helping spur growth for all providers. Both Amazon’s Jeff Bezos and Netflix’s Reed Hastings have insisted over the years that people will take multiple services, and that appears to now becoming reality.
Videology has released its latest Knowledge Lab research report which is focused on first-party data and how it is being used to help target video ads. Among the highlights of the report are that 25% of video campaign impressions Videology now serves use first-party targeting. Overall, the percentage of video campaigns using first-party data has increased from 5% in 2015 to 11% in the first half of 2017.
It goes without saying that the quality of any consumer experience will directly affect the satisfaction derived from it. Video is no different; as has been shown in numerous studies over the years, whenever the streaming quality is diminished, so too is the viewer’s satisfaction.
But new research from Akamai, conducted by Sensum, which used advanced biometric measurement methods, has revealed the extent to which lower quality streaming impacts viewers’ experiences and perhaps more importantly, what the business consequences of this are. Admittedly, the research is a bit geeky, but it’s also quite eye-opening and valuable for anyone building video products and services.
Cisco has released the latest version of its Visual Networking Index, forecasting among other things, that live video will increase 15x over the next 5 years to reach 13% of all global Internet video traffic by 2021. Cisco is forecasting video will account for 82% of global Internet traffic, in line with prior forecasts and far surpassing any other application type.
Cisco attributed the growth in live to “streaming of TV apps and personal live streaming on social networks.” Facebook Live has continued to grow in popularity, as has streaming live sports and events by various TV networks and rights-holders. As an example, the Ariana Grande benefit concert on Sunday drew more than 76 million views on Facebook Live.
Categories: Live Streaming
Broadband connections keep getting better, enabling video and other high-bandwidth applications, according to Akamai’s Q1 ’17 State of the Internet Report. Global average connection speed was up 15% vs. a year ago, to 7.2 mbps, with 96 of the 149 countries/regions that Akamai tracks seeing an increase.
Perennial leader South Korea had the fastest connection speed, at 28.6 mbps, followed by Norway (23.5 mbps), Sweden (22.5 mbps) and Hong Kong (21.9 mbps). All of the top 10 countries has an increase vs. last year’s Q1 except South Korea, with dropped modestly. The U.S. broke into the top 10 in the number 10 position at 18.7 mbps, up 22% vs. a year ago, the biggest change among the group. A total of 25 countries/regions had an average speed of at least 15 mbps, up from 23 in Q4 ’16.
Categories: Broadband ISPs
Online video advertising is still relatively new, so understanding its exact impact on critical brand metrics is not yet entirely clear. To better understand the correlations between frequency and impact, YuMe recently conducted a study using Kantar Milward Brown’s MarketNorms data and select video ad campaigns that ran in Q1 2017.
Not so surprisingly, at a high level, YuMe found that as viewers experienced more video ad exposures, all brand metrics improved. These metrics include aided awareness, online ad awareness, message association, brand favorability and purchase intent.
With the NewFronts kicking off next week, there’s more evidence that ad buyers are looking to shift spending to online video. AOL has released research indicating that 83% of ad buyers surveyed are planning to increase their video spending in 2017, making it their number one choice. Social was second with 81%, followed by display (79%), search (77%), OTT/Connected TV (72%) and native/content marketing (72%).
Here’s one measure of how popular watching online video in the living room has become: according to new research from Parks, which was presented at NABShow, among broadband households, over 25% of viewing done on TV was from online sources, up from 10% in 2010. No surprise, linear broadcast TV saw the biggest decline over that period, dropping from 62% of TV time to 41% of time.
Topics: Parks Associates
TV Everywhere (TVE) continues to gain adoption, with research released late last week by Hub Entertainment Research and industry trade group CTAM revealing that 56% of pay-TV subscribers watched TVE content in the past 6 months with 51% saying they watched in the past month. According to CTAM, all of the top pay-TV operators, 400 smaller independent cable operators and 100+ networks now deliver TVE content.
Categories: TV Everywhere