The TV landscape is changing drastically. That didn’t take long at all! Changing consumer behaviors and values such as the increase of streaming video as well as growing willingness to pay for anywhere access have opened the door to a whole new focus and opportunity to monetize directly.
New aggregators are enabling consumers to decide what they want to watch and pick-and-mix their own services. This disruption puts the user at the center. It will be up to brands and service providers to build compelling consumer experiences and to evolve into the next phase of transactional TV.
According to the fifth annual Ericsson ConsumerLab TV and Media Report, streaming video is now nearly as popular as traditional television. After surveying over 23,000 people in 23 countries, it was found that 75 percent of respondents watched streamed video several times each week, while 77 percent watched scheduled broadcast television several times each week.
The report also found slight decreases in time spent viewing recorded broadcast television or DVDs and Blu-ray Discs.
YouTube was the most popular option for on-demand streaming, followed by Netflix, Hulu, Amazon Prime, and HBO Go. Binge watching is popular with subscription video-on-demand (SVOD) customers, with half saying they prefer that all the episodes of a series be released at once. SVOD services make catching up with a series easy, and let viewers watch at their own pace, the report says.
The detailed report also found a rise in phone and tablet viewing. While the average number of hours spent watching video on televisions, desktops, and notebooks has declined in the past two years, time spent viewing on phones and tablets has increased.
Transactional video-on-demand (TVOD) isn’t currently part of most respondents’ viewing habits, the report found. Only 14 percent included TVOD costs in their monthly TV budgets, but almost 80% of respondents indicated they would be willing to pay for TVOD if the platforms offered a better selection or more friendly format. This is good news for content providers, but frustrating to IT developers who suffer a lack of advanced technologies presently to plug in to the myriad of websites and their mish-mosh of integrated Apps and delivery systems. But, they are working on it.