The internet has become increasingly important in the way that consumers now watch television. Especially given the rise in subscription-video-on-demand streaming services (others known as SVOD).
The whole area of online TV and video services is forecast to generate $42 billion dollars in global revenues by 2020. We know there is huge demand as more than 50% of consumers state that they watch streamed on-demand video content at least once a day. In fact, it is estimated that we spend six hours a week watching streamed TV series, programs and movies on-demand. In the USA alone, more than one in two people stream TV shows and movies on a monthly basis.
Traditional or linear TV still remains strong, but it is linked to age. For example; 82% of 60 to 69 year olds say they watch traditional TV on a daily basis, while only 60% of millennials (those aged 16 to 34) do so. Younger generations are becoming increasingly frustrated with traditional TV and 62% of 25 to 34 year olds say they cannot find anything to watch on a daily basis.
A prevalent trend is the phenomenon of ‘cord cutting’ where viewers are ditching their expensive cable services and opting instead for subscription video-on-demand services. In fact, one in four consumers completely cut or pared back their traditional TV services in 2015 with 47% doing so for cost-related reasons.
SVOD services allow viewers to stream the programming that they want from anywhere they are in the world, over the internet. The top three SVOD providers are Netflix, Amazon Prime and Hulu. Binge watching is a common trend among SVOD users with 87% of them binging at least once a week.
Interestingly, such is the power of SVOD now that one in five people watch longer SVOD content on their smartphones. In fact, the average time spent watching TV and video on mobile devices (including smartphones, tablets and laptops) increased by three hours a week between 2012 and 2015.
For an illustrated look at these insights and more, have a look at this infographic created by Frame Your TV.