& cplSiteName &

Consumer Interest in à la Carte Declining – TiVo Study

Jeff Baumgartner
1/22/2019
50%
50%

Most consumers still want to buy video content and programming on an à la carte basis, but that group is shrinking as the market for TV shows and movies becomes increasingly fragmented and "content fatigue" is beginning to set in, TiVo found in its latest "Video Trends Report."

TiVo Inc. (Nasdaq: TIVO)'s study, based on a Q4 2018 survey of some 4,458 adults in the US and Canada, found that 70.9% of consumers remain interested in the à la carte option. But that's down markedly from 81.3% in the year-ago period.

That decline indicates that there are "signs of content fatigue" as consumers become overwhelmed by the choices they have from traditional pay-TV services as well as a growing multitude of OTT-delivered subscription and free, ad-based choices, TiVo said.

The scenario isn't about to change anytime soon. In fact, the sheer number of choices will only become larger in the months ahead, as Walt Disney Co. (NYSE: DIS), AT&T Inc. (NYSE: T)'s WarnerMedia and Comcast-owned NBCUniversal LLC push ahead with plans to launch various direct-to-consumer video products. (See Can NBCU Crack the Economics of OTT?, Disney Dispenses Details About Its New Streaming Service and AT&T CEO: Our SVoD Service Won't Be 'Another Netflix'.)

The number of video content types being tapped by consumers (pay-TV and free and paid OTT) continues to climb. Per the Q4 2018 TiVo study, respondents reported using an average of 2.75 services, up 26% from the 2.18 services they reported using in 2017.

And the types of consumer-generated bundles being assembled is also incrwasingly fragmented, with 10.6% combining pay-TV with Netflix and Amazon Prime Video. The next largest self-created video bundle, at 7.5% of consumers, mixed pay-TV with video from YouTube and Facebook.

Consumers also have different thoughts about what video sources are "essential" versus "supplemental." Some 52.7% of those surveyed deemed Netflix to be "essential" while just 39.5% gave that same designation to cable TV.

And OTT has clearly become a video source for the masses, as 69.3% said they used some type of Internet-fed, subscription video offering, according to the survey.


Light Reading is back at NAB 2019 for a special breakfast workshop, Getting to OTT 2.0. This forum tackles the most pressing issues facing video providers as they seek to manage and monetize their new streaming services. See you on April 8 in Las Vegas -- all NAB attendees get in free!


Although cord-cutting remains a sticky issue for pay-TV providers (18.8% of those surveyed plan to cut the cord in the coming months), live TV is not dead – that category still leads in terms of time spent watching. About 63% said they watch one hour or more of live TV accessed via a channel guide per day, while 52% said they watch one hour or more of video from an OTT/subscription service per day.

However, the traditional set-top box is clearly on the wane as streaming devices gain ground as the primary access point for pay-TV services. About 22% said they access pay-TV with a streaming device, and 26.2% said they have replaced their set-top box altogether with a streaming device. (See Sale of Arris Set-Top Box Biz 'On the Table' for CommScope – Analyst .)

Per the study, smart TVs were the most popular streaming device (27.1%), followed by gaming consoles (19.4%), Roku players (17.7%) Amazon Fire TV (15.7%) and Apple TV boxes (13.3%).

— Jeff Baumgartner, Senior Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Threaded  |  Newest First  |  Oldest First        ADD A COMMENT
More Blogs from The Bauminator
Continuing a growing trend, WOW has become the latest cable operator to combine its broadband service with a skinny bundle OTT-TV offering.
Industry sources say it's extremely unlikely that Charter would do a full syndication deal for X1, but that Charter could be interested in adopting some specific features and capabilities of Comcast's video platform.
As the pay-TV sector continues to struggle, programmer sets launch of several free, ad-supported streaming channels from BET, Comedy Central, Spike and MTV on the now Viacom-owned Pluto TV ad-based OTT service.
Netflix is akin to a 'Blockbuster store in the cloud' while Disney+ will cater to families and fans of The Mouse's well-branded, highly recognized fare, analyst says.
The cablecos and Verizon could be better suited with a revised deal centered on collaboration and network convergence – an agreement focused on small cell deployments that can fuel 5G networks.
Featured Video
Flash Poll
Upcoming Live Events
September 17-19, 2019, Dallas, Texas
October 1, 2019, New Orleans, Louisiana
October 2-22, 2019, Los Angeles, CA
October 10, 2019, New York, New York
November 5, 2019, London, England
November 7, 2019, London, UK
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
All Upcoming Live Events
Partner Perspectives - content from our sponsors
Transform Beyond Borders to Lead the Innovation
By Ben Zhou, CEO, Whale Cloud
Reject Limits. Build the Future.
By David Wang, Huawei
China Telecom & Huawei Jointly Complete the World's First End-to-End 5G SA Voice & Video Call
By Jay Liu, Senior Marketing Manager, Cloud Core Product Line, Huawei Technologies
All Partner Perspectives