Tivo Study Highlights Cordcutter Behaviors
AMSTERDAM -- 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."
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.
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.
TiVo Inc. (Nasdaq: TIVO)