Thursday, April 05, 2018

Video viewing habits settling as spending and multiplatform usage drop

Parks Associates releases new research showing U.S. broadband households report spending $23 on average for video entertainment per month

New consumer research from Parks Associates shows that U.S. broadband households report their average monthly expenditure on video entertainment outside of a pay-TV subscription has dropped from $29 in the past two years to $23 in the last half of 2017. The research firm notes spending on internet video has held steady at roughly $9 per month for several years, while reduced spending on cinema tickets and DVDs/Blu-ray discs contributed significantly to the overall decline. Parks Associates released two new studies—360 View: Digital Media and Connected Consumers and 360 View: Access and Entertainment in U.S. Broadband Households—which also show a decline in multiplatform usage among households, as use rates on individual screens declined despite the fact that overall video viewing has held steady.

“The number of overall consumers viewing video on a connected device remains steady at 92% of U.S. broadband households, but viewers are using fewer devices to access that content,” said Brett Sappington, Sr. Director, Parks Associates. “This finding indicates that consumers are starting to settle into particular viewing habits. They are focusing more on their favorite screen and connected devices and are reducing time spent on other video screens.”

Average Household Expenditure on Home Video Entertainment | Parks Associates

The research firm also notes that many viewers want access to their OTT services through their pay-TV set-top box. Currently, one-fifth of pay-TV subscribers have the ability to access online video services through their set-top box, and one-third of pay-TV subscribers say access to OTT via a pay-TV UI or channel guide is appealing.

“Users are experimenting less with multiple connected devices, but they continue to experiment with multiple OTT video services,” said Hunter Sappington, Research Analyst, Parks Associates. “Many consumers now see OTT video as complementary to both other OTT video services and pay-TV services, rather than a replacement. Today’s OTT market is much more about bundling and partnerships than it is about winning subscribers from direct competitors.”

360 View: Digital Media and Connected Consumers and 360 View: Access and Entertainment in U.S. Broadband Households detail consumer adoption of video and broadband services and their consumption and spending for digital media and OTT content. Other highlights include:

  • The increasing number of partnerships between pay-TV and OTT providers is driving the number of U.S. pay-TV households subscribing to an online video service through their pay-TV provider from 10% a year ago to 21% now.
  • Households watch an average of 14.6 hours per week of video on a TV screen.

Parks Associates will address the changing dynamics of the pay-TV market at the research workshop Survivor’s Guide to the New Video World, May 14 in Denver, at The Pay TV Show. The Pay TV Show, hosted by FierceMarkets, will address innovative technologies, strategies, and business models that telecom, tech, and media companies are using to compete in this disrupted marketplace. Sponsored by Espial, Survivor’s Guide to the New Video World highlights the latest consumer research and explores trends defining success in the new landscape for video services.

For information about Parks Associates, visit www.parksassociates.com. To schedule an interview with an analyst, contact Julia Homier at julia.homier@parksassociates.com, 972-996-0214.

About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, Connected Health Summit: Engaging Consumers, and Future of Video: OTT, Pay TV, and Digital Media.

http://www.parksassociates.com

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