A Manatt and Vorhaus report on the state of content consumption has revealed that despite the continued ascendance of online video in the US, traditional TV Is indeed live and kicking.
The inaugural Digital Strategy Study analysed more than 2,000 people over the age of 18 and questions focused on media attitudes and the behaviours of consumers on a broad range of topics, in particular trends for the future of cord-cutting, subscription video-on-demand and esports.
The stand out finding in the report was that despite recognising that traditional TV consumption was falling far behind digital devices for consumers aged 18–34, television was still the top-rated device for the broader population over the age of 18. As much as 72% of 18–34 year-olds used a smartphone to watch online video once a week or more, compared with only 56% who used a television set connected to the internet.
Of online users, nearly three-quarters subscribed to a SVOD service, with nearly three-fifths using Netflix. Furthermore, half of all SVOD viewing was found to be consumed on an internet-connected TV, proving, said Manatt and Vorhaus, that related subscription apps are critical for connected TV’s popularity. Consumers also say they would likely to buy up to another 1.6 SVOD services, beyond what they already have.
More than half of online users said that they watched live streaming video every day on a wide variety of topics. Within that category, esports was quickly gaining market share as the sixth most popular type of content; 46% of respondents said they watch more esports now than they did six months ago, and 43% anticipate spending more time watching esports in the upcoming six months.
Yet while cord-cutting is projected to continue at a steady pace, 35% of consumers noted interest in subscribing to a skinny bundle as a streamlined alternative to cable packages. Such are the prospects of skinny bundles that the report suggests that they might be a saving grace for pay-TV companies. The analyst noted that with 47% of respondents saying cost is the primary reason for cord-cutting, traditional pay-TV companies have found traction with this customised offering.
“SVOD and OTT continue to grow and traditional pay TV remains under pressure from cord-cutting,” said Mike Vorhaus, CEO of Vorhaus Advisors. “[The Digital Strategy Study] suggests that skinny bundle offerings are an effective strategy for winning back traditional pay-TV consumers. Furthermore, traditional television consumption remains highly attractive, particularly among the population 35 years and older.”