The latest Video Trends Report from TiVo, the company that offers UI, metadata, DVR and audience targeting capabilities, paints a worrying picture for Pay TV in North America but also points to the fragmented OTT environment and the current lack of dominant streamers beyond Netflix. In a survey of adults (over 18-years-old), TiVo found that 53% consider Netflix as essential, reflecting the wide reach of the service as well as the consumer satisfaction it generates.
The majority of Pay TV users are satisfied with their service and nearly a quarter are ‘very satisfied’ but 19% said they plan to cut the cord. If that doesn’t seem to add up, the survey provides the likely reason, since 80% of cord-cutters ditch Pay TV because it is too expensive. The down-side for the streaming services that cord-cutters turn to is that theirs is a cost-sensitive market.
The average age of a cord-cutter is 37-years-old and the average age of a cord-only consumer – someone that only watches Pay TV – is 53. The cord-only group comprises 22% of the population.
The survey showed the extent of the fragmentation in the streaming landscape. “With the exception of Pay TV and Netflix, people are not flocking to any particular content providers or services. Instead, they are demanding more content from more sources than ever before,” TiVo observes.
While 70% of the North American population use OTT services, according to this survey, only three services are used in more than one-tenth of homes. Here are the proportions taking the most popular paid services: Netflix (50.4% of people have it), Amazon Prime Video (21.8%), YouTube TV (11.9%), Hulu on Demand (9.5%), HBO Now (7.5%), Hulu Live (6.9%), DIRECTV NOW (6.3%), CBS All Access (5.2%), PlayStation Vue (4.4%), Showtime on Demand (4.1%), Starz on Demand (3.6%) and Sling TV (3.2%).
This survey found signs of content fatigue, with a decline in interest in a la carte channel packaging. Interest was down 13% year-on-year. “With so many content types and providers — not to mention the myriad viewing devices — are consumers becoming overwhelmed?” TiVo asks.
The company has its own answer: they may be exhausted by the available choices, but they do still want them. “In this fragmented landscape, providers have to know how to attract and keep their subscriber base. Ultimately it is up to industry players to help them ﬁnd what they want to watch, when they want to watch it,” says TiVo, which itself is a leader in content discovery.