By: nScreenMedia’s Colin Dixon
The changing viewing habits of US consumers comes through loud and clear in the latest video trends report from TiVo. SVOD has become a daily habit for 60% of consumers, and most of them are using connected TV to watch. With so many video services at their disposal, it is no surprise that most people want help finding the content they want.
SVOD is a daily service
TiVo reports that 64% of survey respondents used SVOD services in Q3 2017. Of those, 93% say they used their services every day. Put another way, 60% of US consumers are daily SVOD users. Such deep adoption is a remarkable achievement for a service category that is barely ten years old.
SVOD users are also watching for much longer. 53% report watching for 2 or more hours a day. For comparison, Nielsen reports that the average TV viewer watches live and catch-up TV for a total of just under 4 hours per day.
Shift away from video rentals continues
The decline in video rentals, which has been apparent in data from the Digital Entertainment Group for some time, is also seen in TiVo data. The company reports that there was a 3.5% decline in the number of people using transactional VOD (TVOD) in the last quarter. Just under a third of US consumers used TVOD services in Q3 2017.
What’s more, every major online TVOD store saw declines in usage in the period. For example, the market-leading service, Amazon, saw a decline of 2% quarter-over-quarter (QoQ), Redbox Kiosks were down 3%, and iTunes was down 0.5%.
Consumers embracing connected TV
The number of people using a connected TV has increased dramatically of the last two years. TiVo says that 60% of the survey respondents report using a streaming device during Q3 2017. Looking at the trends in device usage, consumers are moving to smart TVs and streaming media players. Since Q3 2015, the number of people using a smart TV has increased from 13.9% to 25.2%.
Streaming media players have also grown in usage, with one exception. The number of people using a Roku player (either a stick or set-top box) increased from 9.3% in Q3 2015 to 14.7% in Q3 2017. Over the same period, Amazon Fire TV stick users tripled to 9.2%. Chromecast users increased more modestly, from 7.8% to 8.7%. The number of Apple TV users hardly changed at all, up just 0.3% to 8.9%.
Reflecting the move away from physical media and video rentals, Blu-Ray player use as a streaming media player is in decline. Two years ago, 11% said they used the device to stream video. Today, just 10% say the same.
Viewers want help managing all their video services
With 83% using pay TV services, 64% SVOD, a third using TVOD stores, and 27% using TV network apps, the majority of US video viewers are juggling multiple apps and services. Figuring out where a movie or TV show is available has become a major headache for video viewers. Given this data, it should come as no surprise that 53% would like to be able to perform cross-library searches.
It is perhaps not surprising that more young people want this feature. Interest peaks in the 23-to-25-year-olds at 73%. That said, more people are interested in this feature than not in all age groups 60-years-old and younger.
Why it matters
Consumer viewing habits have shifted dramatically since the introduction of SVOD just under ten years ago.
60% of US consumers watch SVOD daily.
Renting videos is a fading habit in the US, declining 3.5% in just one quarter.
60% of US consumers use a connected TV, with smart TV and streaming media players the most popular devices.
Over half of consumers are having trouble finding the show they want