Mind the Gap: TiVo Survey Sheds Light on Differences Between Loyal Pay-TV Subscribers and OTT Cord Cutters
September 13 2017 - 3:01AM
Business Wire
TiVo’s Latest Consumer Trends Study Suggests
Service Providers Need to Appeal to a Highly Segmented Viewer
Composition Amidst Fierce Competitive Pressures
(IBC 2017) – TiVo Corporation (NASDAQ: TIVO), the global leader
in entertainment technology and audience insights, today released
findings from its 2017 survey of pay-TV and over-the-top (OTT)
service subscribers across the U.S., Europe and Latin America. The
multi-country study, which revealed that respondents watch an
astonishing global average of 4.4 hours of video content each
day, is part of TiVo’s ongoing exploration into viewer
engagement with the content, services and devices that shape the
evolving consumer entertainment experience.
Most notably, this year’s survey revealed that:
- One in four consumers who have
had pay-TV services for less than 12 months are “extremely likely”
to cord cut or cord shave in the next six months
- Fifty-five percent of pay-TV
subscribers in the U.S. and 42 percent in Western Europe
have had service with their current provider for four years or
more, compared to 32 percent in Latin America
- In the U.S. and Western Europe, tenured
pay-TV subscribers are much more likely to be Baby Boomers instead
of Millennials, which is a stark contrast to Latin America where
the distribution of age groups is fairly even. Among those in the
U.S. who have been with their provider for four years or more,
51 percent are Boomers while only 11 percent are
Millennials.
- In Western Europe, just 43
percent of those who have had their pay-TV service for four
years or more subscribe to an OTT service, compared to 49
percent in the U.S. and 67 percent in Latin America
“As new, shiny OTT services and streaming devices continue to
proliferate in the market and compete for consumer attention, there
is considerable risk that younger generations may come to view
pay-TV as an antiquated service that doesn’t play a role in their
daily lives,” said Paul Stathacopoulos, vice president of Strategy
and Research, TiVo. “Service providers must focus on delivering
entertainment experiences that are compelling to a highly segmented
viewer composition. By staying ahead of the curve through
technology innovation, providers can retain longer-term
subscribers, while attracting young consumers by adapting the TV
experience to include a wide array of internet video services and
viewing devices.”
Anyone Watching?
TiVo found that more than 38 percent of viewers shut down
and turn off their devices altogether when they can’t find
something to watch. A striking 50 percent “strongly agree”
that, for the amount they pay for their TV service, it should be
easier to find what they want to watch, while 26 percent say
they would pay more each month for a service that simplified video
discovery across all the services they subscribe to.
Stathacopoulos continued, “As video entertainment options
expand, consumers around the world continue to consume a vast
amount of content across services and devices. But without a shift
or focus on innovating the way consumers connect to entertainment,
hyper-fragmentation will continue to be a barrier, driving consumer
frustration and impacting how the industry captures the
entertainment wallet share.”
Talk to Me
An example of new technology that is winning over consumers is
advanced voice technology. While we are still in the early days for
voice and devices that support voice, those who use it appear to be
using it often:
- On average, 60 percent of global
respondents who own a voice remote use it frequently or
every day
- 64 percent of those who own
voice controlled home assistants use them frequently or
every day
- 59 percent of those with access
to a voice enabled video app use it frequently or every
day
- 61 percent of those who own
voice controlled wearable devices use the technology
frequently or every day
“When it comes to voice technology, we see broad appeal across
all generations and this year’s survey findings validate that
claim. We believe that voice will become the norm especially as
voice assistants continue to enter homes and voice search
technologies become more accurate and intuitive,” concluded
Stathacopoulos.
Methodology
The research findings were the result of an online survey,
conducted by TiVo Corporation, of 8,500 pay-TV and OTT subscribers
across seven countries worldwide with 2,500 interviews completed in
the U.S., and 1,000 interviews completed each in the U.K., France,
Germany, Brazil, Mexico, and Colombia.
To download the infographic and the survey data, please click
here.
About TiVo
TiVo Corporation (NASDAQ: TIVO) is a 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.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements. Readers
are cautioned that such forward-looking statements involve risks
and uncertainties that could cause actual events or our actual
results to differ materially from those expressed in any such
forward-looking statements. Readers are directed to TiVo’s periodic
and other reports filed with the Securities and Exchange Commission
(SEC) for a description of such risks and uncertainties. TiVo
undertakes no obligation to update any forward-looking
statements.
TiVo and the TiVo logo are registered trademarks of TiVo
Corporation and its subsidiaries worldwide.
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version on businesswire.com: http://www.businesswire.com/news/home/20170913005227/en/
TiVoJennifer Miu, +1-408-764-5411Jennifer.Miu@tivo.com
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