TiVo’s Video Trends Report Unveils Consumer Increase in Content Consumption While Amount of Video Services Decrease
September 26 2023 - 2:00PM
Business Wire
- The number of video services used by consumers has declined
slightly over the past 6 months as the adoption of ad-supported
video increases
- SVOD churn remains considerable as consumers are becoming
more agile in juggling their entertainment needs
Research released today from TiVo Platform Technologies LLC
(TiVo), a wholly owned subsidiary of entertainment technology
company Xperi Inc. (NYSE: XPER), found an emerging shift in
entertainment consumption that is changing how consumers view
entertainment spend and usage. The average number of streaming
services used by consumers decreased from 11.6 in Q4 2022 to 10.9
in Q2 2023, followed by a decrease in consumer spending from an
average of $189 a month to $170 over the last six months. While
consumers are undoubtedly reconsidering their spending habits, this
change has shown growth in consumer video consumption; the report
saw a jump from 4.4 hours a day in video consumption in Q4 2022 to
4.7 hours per day.
When looking at how respondents spent their time watching video,
the report found that ad-supported video on demand (AVOD) and free
ad-supported streaming TV (FAST) consumption increased considerably
from Q4 2022. This increase in AVOD/FAST is a reflection of
consumer budget constraints and major subscription video on demand
(SVOD) companies offering lower-cost services that generate higher
ad revenue. This new SVOD/AVOD hybrid structure allows users to
consolidate their subscriptions, cut costs and still watch the same
or more amount of content. With less disposable income available
among consumers, the demand for flexibility in entertainment
choices has surged in response to the evolving preferences in
entertainment over the recent years.
As entertainment consumption rises, content discovery continues
to be a pain point for many consumers. When trying to select a
movie or show, 82% of consumers are prone to browsing before making
a final selection - with over 60% use multiple apps in their
pursuit.
“Consumers know what they want in a video service and are
adjusting their entertainment habits to fit their needs – whether
that be cancelling their SVOD subscriptions or reviving their
cable,” said Scott Maddux, VP of global content strategy and
business at Xperi. “As we continue to see this shift in consumer
behavior it’s essential that entertainment providers focus on
solving consumer content discovery issues to help consumers who are
juggling their entertainment needs get back to what’s important,
enjoying entertainment.”
Additional TiVo Video Trend Report Highlights
- TV is King: In competition with other devices like
smartphones, tablets, and computers, TV remains the preferred
choice by more than 3x other types of devices for watching video.
Although, preference for watching on TV is slipping, with only
63.7% currently reporting a preference for watching content on this
device – compared to 73.4% in Q2 2022. The drop appears driven
primarily by pay TV subscribers.
- Word of Mouth Leads Discovery: When it comes to
discovery methods, the percentage of those who find out about new
TV shows or movies from commercials has declined 6% year-over-year.
In comparison, word of mouth and recommendations from friends
remain as strong as ever, inching out commercials as the most
common method of discovery in the spring of 2023.
- Local Content Remains Important: While virtual
multichannel video programming distributor (vMVPD) continues to be
a top competitor to pay TV, 28% of people who cut the cord later
decided to resubscribe to traditional TV to solve their need to
watch sports, live events and local programming. Of all time spent
watching video, 22.6% was spent watching different types of local
content.
Trends To Watch
As the entertainment industry continues to grow and shift, Xperi
is noting the following trends as ones to watch:
- In-Car Media Consumption on the Rise: Of those who watch
video in the car, over 80% do so at least a few times a month, with
49.8% saying they do so to pass the time while waiting for
something. The introduction of larger in-cabin screens in vehicles
marks a pivotal moment in the evolution of in-car entertainment,
allowing consumers to easily access and enjoy video content within
the car.
- Subscription Seasonality Spikes: As consumers become
more agile in managing their entertainment needs, a rise in cord
reviving or adjusting subscriptions based on when live events or
show premiers launch may increase in popularity. The report found
that one of the top reasons consumers signed up for a SVOD service
in the last six months was because it had one specific show or
movie they wanted to watch (31.9%).
- Smart TV Brand Loyalty Will Remain Strong: As the use of
smart TVs continues to increase, so will smart TV brand loyalty. A
trend emerging from the report shows that only 1.6% of respondents
with three or more smart TVs in their home have three different
brands.
Find more information from the latest Q2 2023 Video Trends
Report here.
Additionally, TiVo is an expert in video trends and TV
viewership data. TiVo TV Viewership Data includes second-by-second
level data captured from set-top-boxes within households across all
210 DMAs in the U.S. The data reflects both live or time-shifted
viewership information which is the cornerstone of TiVo’s expertise
in TV data processing. Find more information about TiVo’s
Viewership Data here.
Methodology
Since 2012, TiVo has surveyed consumers to uncover key trends
relevant to TV providers, digital publishers, advertisers, and
consumer electronics manufacturers. The latest TiVo Video Trends
Report surveyed 4,518 adults 18 and older living in the U.S. and
Canada during the second quarter of 2023 (3507 US, 1101 Canada). In
addition to identifying and analyzing key trends in viewing habits,
the TiVo Video Trends Report provides insight to consumer opinions
regarding Subscription Video on Demand (SVOD), Transactional Video
on Demand (TVOD) and Advertising-Based Video on Demand (AVOD)
providers, emerging technologies, connected devices, over-the-top
(OTT) apps and content discovery features, including personalized
recommendations and search.
About TiVo
TiVo brings entertainment together, making it easy to find,
watch and enjoy. We serve up the best movies, shows and videos from
across live TV, on-demand, streaming services, and countless apps,
helping people to watch on their terms. For studios, networks and
advertisers, TiVo targets a passionate group of watchers to
increase viewership and engagement across all screens. TiVo is a
wholly-owned subsidiary of Xperi Inc. Go to tivo.com and enjoy
watching.
About Xperi Inc.
Xperi invents, develops, and delivers technologies that enable
extraordinary experiences. Xperi technologies, delivered via its
brands (DTS®, HD Radio™, TiVo®), and by its startup, Perceive, and
IMAX Enhanced, an IMAX and DTS partnership, have been integrated
into billions of consumer devices and media platforms worldwide,
powering smart devices, connected cars and entertainment
experiences. Xperi has created a unified ecosystem that reaches
highly engaged consumers driving increased value for partners,
customers, and consumers.
©2023 Xperi Inc. All Rights Reserved. Xperi®, TiVo®, DTS®, HD
Radio™, Perceive® and their respective logos are trademark(s) or
registered trademark(s) of Xperi Inc. or its subsidiaries in the
United States and other countries. All other trademarks and content
are the property of their respective owners.
XPER- P
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version on businesswire.com: https://www.businesswire.com/news/home/20230926651980/en/
Xperi Media: Allyse Sanchez, Xperi
Allyse.sanchez@xperi.com
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