#10 M&E Research : Online Video a major force to reckon but remains supplemental
Online video is rising rapidly with convenience to watch anytime, anywhere and on any-device bringing a behavioral shift in viewers consumption habits. This change is further propelled by increasing broadband speeds ,growth in mobile based consumption, expanding connected device ecosystem and surging volumes of premium content becoming online. TV Everywhere which remained stranded for last 4 years is finally making progress and OTT video platforms are gaining widespread favoritism across all age groups, but the fact remains online video is still supplemental to traditional TV service.
In a recently published report from CES titled “Video Content Discovery and Purchasing Trends“, traditional television services remain far ahead of Online video services, reaffirming the significance of laid back TV experience. While there is no denying that TV landscape is challenged by rapidly growing pure play Online services enabling non traditional consumers to subscribe for premium content with limited commitment and at a low cost, the role of traditional TV is far from over. CES study explores video content viewing behavior, discovery, acquisition and format ownership preferences bringing some interesting facts which explains the ecosystem nuances
- Free and paid OTT video streaming services have flourished with significant following among younger consumers but use of traditional television programming remains consistent for most age groups.
- News, TV shows followed by movies and sports are the most frequently watched content formats
- Leading ways to discover TV shows and movies remain channel surfing (50 percent), on-screen program guides (47 percent), TV commercials (47 percent), word of mouth (34 percent) and network websites (27 percent).
- Vast majority of consumers video library consists of DVD/Blu-ray discs with physical ownership and ability to watch high resolution content driving format choice.
- Television Programming through service provider (Cable, Satellite, IPTV) still remains the key Video content source (79 percent), complemented by DVD/Blu-ray/VHS (66 percent) and fast rising free OTT (47 percent) and paid OTT streaming (37 percent ) respectively.
- Growing majority of consumers are owning video in digital format with ease of storage, accessibility and price being key reason for digital adoption.
- Original production remains the key differentiator, a space actively persuaded by OTT players with Netflix, Hulu and Amazon commissioning their own productions.
- Laptops (52 percent), desktop PCs (44 percent) and HDTVs (40 percent) are the most commonly used devices for watching streamed or downloaded video content. About a third of consumers view video content on smartphones (32 percent) and tablets (31 percent)
Video consumption trends are changing with Online services making watching more intuitive, interactive, social and seamless than ever before, but the key remains content and convenience where traditional services still rule the game.
What is your perspective?
- How long can traditional Pay TV providers and telcos remains unaffected from the onslaught brought in by OTT players. Is it time to join the party or re-invent oneself and fasten TV Everywhere deployment.
- Is it time for Virtual MSOs to finally emerge from the shadows and offer meaningful challenge to traditional services ?