Annual Study Shows Online TV Is More of a Supplement Than a Replacement
Boston, MA (PRWEB) May 29, 2014 -- According to the annual “What’s TV Worth” study from Hub Entertainment Research, 90% of consumers with broadband service still have a subscription to Pay TV service, even as their use of online TV sources expands to more platforms and more devices. However, online sources—in particular, ad-based aggregators like Hulu and subscription services like Netflix—lead traditional Pay TV providers in perceived value.
• Consumers create their own bundle from a variety of TV sources.
• In 2014, the average Pay TV subscriber also uses an average of 2.1 online sources—typically some combination of Netflix, the free version of Hulu, and TV network sites, although many other combinations exist in what is becoming a DIY TV source environment.
• People who use TV Everywhere say they get more value from their TV provider and are more likely to keep their service.
• Pay TV subscribers who use TV Everywhere rate their providers significantly higher when it comes to value than non-users. What’s more, 78% of TVE users say that they will likely stay with their provider a year from now—compared to 67% of those who don’t use TVE.
• Live TV and DVRs are still consumers’ “default” TV sources—but they are losing momentum.
• Live TV is the default source for 49% of respondents—below half for the first time.
• Among Millennials (those age 18-34), only 40% say Live TV is the first source they turn on.
• The number of devices consumers use to watch TV is climbing.
• Consumers who watch online use an average of 2.7 different devices to watch online TV content (e.g., tablet, smartphone, smart TV, TV connected to a game console, etc.)—up from 2.3 a year ago.
“Despite all of the buzz around a cord-cutting revolution, the numbers continue to suggest that viewers are using online sources to complement their Pay TV subscription more than replace it,” says Jon Giegengack, Principal at Hub Entertainment Research. “The bigger risk for traditional TV carriers and networks is in falling too far behind online providers when it comes to easy, flexible ways for consumers to find and view the TV content they want.”
These risks are higher among key groups, like Millennials, says Peter Fondulas of Hub. “Younger consumers are more comfortable trying new TV options, and more comfortable subscribing to several at once. For them, there’s increasingly less reason to be bound to a linear TV schedule.”
About this Research
“What’s TV Worth” is an annual study of U.S. TV consumers. The 2014 study surveys 1,550 U.S. consumers aged 16 to 64, who watch at least five hours of TV per week and have broadband access at home. A report with additional findings from this study is available as a free download from Hub Entertainment Research. The study was conducted in April 2014.
About Hub Entertainment Research
Hub Entertainment Research is a market-research firm with deep expertise in television, movie, videogame, music, publishing, and sports—anywhere that entertainment and new technology overlap. In the television industry, Hub analysts work with networks, content producers, MSOs, and digital distributors. Our job is to help our clients understand the greatest risks and most-promising opportunities facing their companies and to reveal the clearest paths to success in a changing marketplace. For more information, please visit us at http://www.hubresearchllc.com.
Jon Giegengack, Hub Entertainment Research, LLC, +1 (603) 661-0068, [email protected]
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