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TiVo Report Details OTT Viewing Trends

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6/15/2017
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SAN JOSE -- Based on a survey of over 3,100 consumers, TiVo’s Q1 2017 Online Video and Pay-TV Trends Report illuminates many insights, including:

1. OTT User Experience vs. Pay-TV User Experience — As pay-TV providers continue to see subscription erosion, TiVo wanted to uncover what drives the growth of OTT services. Of Netflix subscribers, 57.7% selected the ability for each household member to have their own profile as their top Netflix feature, while 40.7% liked that Netflix recommends content based on previous viewing habits. Additionally, when finding something to watch, pay-TV subscribers with access to video recommendations are 15.2% more satisfied than those without them (see analysis on page 34). Based on these benefits, it seems pay-TV providers may not be rolling out user experience upgrades such as recommendations as fast as consumers want them. Streaming services have the technical ability to test/update UIs more easily and quickly compared to a set-top box — could this be yet another competitive advantage over pay-TV, resulting in less churn because content is easier to find?

2. Build Your Own Skinny Package? For How Much? (see charts on pages 11-12) - 77.3% of respondents would like to pay for only the channels they watch — and this response is up slightly q/q and y/y. Because this report has covered respondents’ ideal price per channel since Q3 2016, a clear trend has emerged: prices are declining. Here is a breakdown of the Q1 2017 ŕ la carte results by region:

  • U.S.: The average price respondents will pay for the top 20 channels is $28.31, a slight decrease q/q, and a 14% decrease over two quarters.

  • Canada: The average price respondents will pay for the top 20 channels is $25.56, a decrease of 9.2% q/q, and 20.1% decrease over two quarters.

    Could the significantly lower cost of services such as SlingTV, Playstation Vue and recent entry, Hulu with Live TV, be forcing consumers to rethink their $80+ cable/satellite bill?

    3. Are Consumers Viewing Sports Over-the-Top? (see pages 40-41) - 34.3% of respondents are “always” or “sometimes” frustrated when trying to find their favorite team, or sporting events in general. A new and prevalent threat to pay-TV providers, social and OTT services are offering sports content to their viewers. As streaming services become a new avenue for watching sports, TiVo added two new questions to gauge traction among consumers. In Q1 2017, 13.5% of respondents answered they have watched a live sporting event on a social media network such as Twitter or Facebook. Of this small group of respondents, the top events watched are from the following leagues:

  • National Football League (NFL) - 48%
  • National Hockey League (NHL) - 30.7%

    For many years, sports programming has been a leading reason to subscribe to pay-TV services. TiVo will continue to monitor this trend to see if sports viewing via streaming services will further disrupt the pay-TV industry.

    TiVo Inc. (Nasdaq: TIVO)

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