Two-thirds of US broadband users watch SVOD on a TV | Media Analysis | Business
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Approximately two-thirds of US adult broadband users (ABUs) now enjoy online subscription video-on-demand (SVOD) services on a home television, according to analyst TDG.

tdg 15 june 2017However, the survey found that such users’ use of TV streaming is not the only factor that distinguishes them from other adult broadband users.

TV subscription streamers (TSSs) tend to be younger than ABUs in general (44% under the age of 34) and more tech-savvy. When watching television, one-fourth of TSSs turn first to SVOD services, and spend on average 41% of their weekly TV time watching streaming video of some kind. Further, SVOD viewing among TSSs is not limited to TVs, with 79% using SVOD services on PCs, 46% on tablets and 59% on smartphones.

TDG also found variations among the mutually exclusive sub-segments of TV subscription streamers. Employing formal statistical methods including factor and cluster analysis, TDG isolated four non-overlapping sub-segments, each accounting for a different proportion of US TSSs:

  • Pay-TV Supplementers: defined by their affinity toward traditional pay-TV services, supplementers use SVOD to complement their TV viewing, not as a substitute or replacement. Live broadcast remains their first choice for TV viewing, and they spend most of their TV time watching such programming.

  • Pay-TV Substituters: this group is distinguished by its aversion toward traditional pay-TV services and an affinity towards SVOD as the primary video source (accounting for two-thirds of total video time). They watch SVOD services on their PCs and smartphones as well, but spend the most time watching them on their TVs.

  • Quantum Viewers: the youngest of the four TSS segments, QVs are characterised by their proclivity to watch SVOD on all their devices, not just TVs. While they are more likely than other segments to use virtually all types of consumer electronic and computing devices (especially Apple products), they are no more likely than TSSs in general to be 'anti-pay-TV.' In fact, they appreciate all forms of video on all their screens.

  • Video Luddites: even among TV SVOD users there is a 'laggard' segment, in this case distinguished by the fact they spend the least amount of time watching all types of video on all types of devices. Luddites nonetheless consider online video services as their key source of entertainment.