New TiVo Survey Reveals “Show-Dumping” is the Latest Challenge as Consumers Navigate Content Choices
September 09 2016 - 3:05AM
Business Wire
Audiences are disengaging from even popular
programming, with more than 1 in 3 viewers reporting they have
given up on shows because they became too difficult or costly to
watch
TiVo (NASDAQ: TIVO), the global leader in entertainment
technology and audience insights, today released findings from a
sponsored survey of pay TV and over-the-top (OTT) service
subscribers in the U.S., Europe and Asia. The global study is a
follow-up to Rovi’s 2015 consumer survey, delving deeper into how
viewers engage with content and explore the services and devices
that make up their entertainment lifestyle.
Above all, this year’s survey revealed that viewers continue
to feel the shockwaves of an industry that is undergoing a
significant transition. Ensuring predictable ongoing engagement
of audiences, once the hallmark of a successful television series,
may be becoming much more challenging.
The survey revealed that while consumers continue to consume
significant hours of entertainment content daily, their
viewership is becoming potentially more transient, with many
viewers “show dumping”—giving up on shows they love because it
became too difficult and/or costly to access them.
- 37 percent of global viewers
have stopped watching a show they previously enjoyed because it
became too difficult to access the content
- Shows most cited as ones which
respondents had stopped watching are ones that generally require a
premium pay-TV package, are only available through paid OTT and/or
are unavailable on OTT services that aggregate content
- On average, respondents spend 4
hours each day watching or streaming video content and an
additional 19 minutes per day searching for something to
watch, with the U.S. average eclipsing the global average with more
than 5 and half hours of viewing time per day
Cord shaving continues to be more predominant than cord cutting,
with more consumers considering downgrading pay-TV packages as they
are supplementing their services with subscription OTT and
streaming media devices.
- On average, 11 percent of all
global respondents say they are extremely likely to downgrade their
service instead of canceling, while 8 percent say they are
extremely likely to cancel their pay-TV service in the next 6
months
- Not surprisingly, the results in the
U.S. were significantly higher than the global average. A
staggering 21 percent stated they are extremely likely to
cord shave and downgrade their pay-TV service, while only 13
percent are strongly considering cutting the cord all
together.
- Multiple points of access for OTT is
now the norm with 58 percent of respondents reporting they
already pay for more than one subscription streaming video service
and 45 percent reporting that they have more than one
streaming media device in their home
While Netflix is one of the most popular SVOD services across
multiple regions, the race for leadership in the streaming media
device space is not yet settled.
- Of the respondents who pay for
streaming services, 81 percent in the U.S. report having
Netflix, with another 69 percent in the UK, 64
percent in France and 38 percent in Germany
- Amazon Prime Video is also faring well
globally, with 50 percent of respondents in the U.S.
subscribed, as well as 49 percent in the UK, 61
percent in Germany and 28 percent in Japan
- Reported ownership for media streaming
devices, such as Roku, Amazon Fire, Google Chromecast and Apple TV,
mostly fall in a tight band with similar results of 20-30
percent for each device brand in available regions
- Roku emerged as the device of choice
for U.S. cord cutters and cord nevers, with remarkably higher
reported ownership of 38 percent versus less than 20
percent reported for each of the other streaming media device
brands with the same audience
Overwhelmingly, consumers feel there is much room for
improvement when it comes to search and discovery. Millennials, in
particular, showing the strongest desire for better discovery
solutions. Since they are the generation consuming the most content
across the most platforms, this implies that Millennials clearly
translate better discovery into a value proposition which attracts
them to the video services they use.
- More than 47 percent of all
respondents agree that for the amount they pay for video
service(s), it should be easier to find what they want to
watch
- 40 percent of viewers turn off
the TV and/or device and disengage all together when they can’t
find something to watch
- In the U.S., 73 percent of
Millennials have streaming devices at home and 91 percent
are SVOD subscribers, in contrast to 29 percent and 50
percent of Boomers
- U.S. Millennials also spend more
than 6 hours per day watching content, with another 32
minutes searching or likely browsing for what to watch
- 53 percent of Millennials say
they often expect recommendations on what else to watch, in sharp
contrast to the 14 percent of Boomers and 36 percent
of Gen Xers
Indications from the research are that better search and
recommendations can drive increased viewer engagement and viewing
time.
- Consumers most satisfied with their
search function watch almost 7 hours of content per day, 21
percent more than the U.S. reported average of 5.6 hours
- Consumers most satisfied with their
recommendation function watch 7.5 hours of content per day, a
massive 34 percent more than the U.S. reported average of 5.6
hours
“Shifts in viewer engagement, like show-dumping, impact the
whole value chain, further challenging business models in a
fragmented marketplace with many different viewing choices,” said
Paul Stathacopoulos, vice president of strategy and strategic
research, TiVo. “Unified discovery and seamless access to content
removes some of these barriers for the consumer, improving
engagement and resulting in real business benefits including higher
content consumption, increased subscriber retention and improved
service value, especially for the Millennial generation.”
The research findings were the result of an online survey of
5,500 pay-TV and OTT subscribers across seven countries worldwide
with 2,500 interviews completed in the U.S., and 500 interviews
completed each in the U.K., France, Germany, China, Japan, and
India. TiVo will showcase its entertainment technology and audience
insights solutions during IBC this week in Hall 14, Stand G01 and
Hall 5, Stand A31.
Download the survey graphics here.
About TiVo
TiVo (NASDAQ: TIVO) is the global leader in entertainment
technology and audience insights. From the interactive program
guide to the DVR, TiVo delivers innovative products and licensable
technologies that revolutionize how people find content across a
changing media landscape. TiVo enables the world’s leading media
and entertainment providers to deliver the ultimate entertainment
experience. Explore the next generation of entertainment at
tivo.com, forward.tivo.com or follow us on Twitter @tivo or
@tivoforbusiness.
Forward-looking Statement
All statements contained herein that are not statements of
historical fact, including statements that use the words “will” or
“is expected to,” or similar words that describe TiVo Corporation’s
or its management’s future plans, objectives or goals, are
“forward-looking statements” and are made pursuant to the
Safe-Harbor provisions of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause the
actual results of TiVo Corporation to be materially different from
the historical results and/or from any future results or outcomes
expressed or implied by such forward-looking statements. Such
factors are further addressed in Rovi Corporation’s most recent
report on Form 10-Q for the period ended June 30, 2016, TiVo Inc.’s
most recent report on Form 10-Q for the period ended July 31, 2016,
and such other documents as are filed with the Securities and
Exchange Commission from time to time (available at www.sec.gov).
TiVo Corporation assumes no obligation to update any
forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release, except
as required by law.
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Finn PartnersRicca Silverio,
+1-949-439-7869tivo@finnpartners.com
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