#14 M&E Research : Media streaming devices on massive uptrend
2015 is the third consecutive year when cable is losing video subscribers albeit modesty, but the new age video service providers are all but happy. They are busy expanding and enrolling truckload of new customers at a growth unprecedented in video industry. Combine large content library, flavored with original programming, price economics and more recent benevolence (or business reality) of major TV networks and SVOD services seems to offer lot of value. And consumers have welcomed them with open arms in their homes.
It is then not surprising that a staggering 27% of U.S. broadband households now own a streaming media device, a figure which was mere 16% a year ago. But what is more interesting is that nearly 90% of these households use them and have these devices connected to the Internet for video consumption. In comparison the next most popular media device Blu-ray players gets only 50% connected presence.
Research Facts
Today, every other U.S. broadband household (57%) subscribes to an OTT video service like Netflix, Amazon or Hulu Plus spending an average of $9 per month, up from $7 spend in 2012. Below are some other interesting facts from research reported by NPD group, Park Associates,Freewheel and Deloitte in this space
- Media streaming devices now account more than 8% of ad views for professional, rights-managed video content, up from just 2% during the year-earlier period and has moved head of tablets (currently 7% ).
- The number of hours watching video content continues to rise, exceeding 36 hours per week in 2014. Internet video accounts for 36% of this time, a decent 3.4 hours a week
- A number upwards of 50 million streaming media players is expected be sold worldwide in 2017.
- A vast majority (75%) of streaming media player owners subscriber to an OTT service.
- Apple TV and Roku hold the largest market share for streaming devices, with Roku being the leader when it comes to best streaming device
- Streaming media devices are currently owned by 27% of broadband households and this percentage is expected to reach 33% in 2016, and 40% by 2017
- A limited group study suggests that video-streaming services such as Netflix has overtaken live programming as the viewing method of choice
- Better user experience (ability to search, navigate and control) in addition to richness of content available online are the key factors driving rise of video consumption using media streaming devices
- Subscribers prefer stream devices for fewer commercials and less disruption than regular TV ads
- One in two consumer of connected TV considers viewing experience to be as good as their traditional TV
- Apple TV and Roku are still the killer veterans as new devices like Amazon’s Fire TV and Google’s Chromecast gain popularity.
- Netflix remains most popular service on streaming media devices, with original programming and new content deals further adding to its success.
What is your Perspective?
Over the top services have gained substantial consumer base and are poised to garner even larger share as more quality content become available and economics plays its chosen role. TV network providers are in for challenging times to get their content to digital properties while balancing their Pay-TV portfolios
- The recent change in un-bundling of Pay-TV services has influence on how consumers get to select TV bundles. But as more TV networks become available through standalone apps, do streaming connected devices and Virtual MSO present a threat to dominance of traditional cable ?
- So far, OTT services have largely augmented traditional broadcast and pay-TV and in many ways helped increase overall consumption of video. Is this a short term wave or can it go beyond when it starts to hurt traditional service providers ?
