Download Report

MAINSTREAMING
STREAMING 2013
From 2010 to 2013, overall use of subscription
streaming increased from 13% to 34%
Mainstreaming Streaming 2013
Over-the-top TV continues to be one of the highest-profile issues
for stakeholders in media and entertainment – creators of content,
distributors of content, manufacturers and retailers of the devices on
which content is viewed, and marketers who place advertising. For all
these players, jumping “over-the-top” is not a choice but a necessity; this
space continues in a mode of high-speed evolution in both services and
devices. Audience access to these options is rapidly increasing not just
through the strong growth of smartphones and tablets but increasingly
through content delivered through the internet to a regular TV set.
Our work over the past four years shows that while the relative growth
for many of the new alternative means of non-linear viewing is strong,
the more conventional methods of viewing (discs, DVRs, and VOD)
are still securely planted at the forefront. The most commonly viewed
digital delivery systems are streaming video through a PC or through
an internet-connected videogame system. Newer digital options –
tablets, digital streaming devices (eg., Roku), and internet-connected
Blu-ray players – are nearing a transition from the early adopter to the
mainstream stage; but fewer than 12 percent of the overall population
yet use each at least once a month. The current generation of teens is well familiar with using their PS3,
Xbox 360, or Wii as a multimedia entertainment system; and the 8th
generation consoles (PS4, Xbox One, Wii U) are built from the ground up
as entertainment centers. As this teen generation passes to adulthood
– and into a position to make decisions on pay TV subscriptions – fallout
may occur if they opt to go over-the-top on their game systems rather
than get pay TV service.
Another recurring trend is that consumer electronics and internet
technology companies are showing an increasingly strong hand in the
ability to bypass more traditional means of distributing content – recent
headlines being Samsung’s purchase of Boxee and Google’s release of
Chromecast.
Netflix, of course, continues to be the dominant subscription streaming
service, well ahead of Amazon Prime Instant Video and Hulu Plus.
Unfortunately for those in the content value chain, these services
operate under veils of secrecy. Little detailed information is released
about audience levels, usage, or other information that can help inform
these stakeholders about the true value of content shown on these
streaming services.
1
How People Use® Media: Over-the-Top TV 2010 - 2013
Mainstreaming Streaming 2013
GfK stepped into that breach with a recent report that helped our
clients understand the details of use, including specific titles viewed
over the course of a week. Most importantly, we saw that regular TV is
most threatened (over three quarters of titles viewed are TV episodes
compared with movies) and that very few TV programs or movies are
worth more than commodity fees for licensing (the long tail means
almost no titles are viewed more often than others).
Additionally, “TV Everywhere” services from TV networks and MVPDs
have expanded quickly in the past year, as TV service operators and
their network partners are hearing the call of the marketplace. Between
“TV Everywhere”-type and VOD services, these sometime-enemies and
sometime-partners could offer a compelling substitute for Netflix that
offers a better selection of up-to-date TV programs and movies. And
consumers are in the mood to listen: for each of the past three years,
about half of Netflix users would be willing to consider cancelling Netflix
if the same type of service, across the same platforms, was offered by
their TV service for a similar fee. While Netflix has a towering brand in
this space, its foundation may be shallow.
Top 10 TV TV/Movie Segments Watched
- Total TV/Movie Segments Viewed TV%
Movies%
Star Trek (Any; 2005)*
4
The Hunger Games (2012)
Breaking Bad
3
Mission: Impossible (Any; 2012) 2
Mad Men
3
Stolen (2013)
1
The X-Files (2002)*
2
7
Witness [Protection] (2012)
1
Arrested Development (2006)* 2
Bully (2013)
1
Family Guy
2
The Awakening (2013)
1
Heroes (2010)*
2
Thor (2011)
1
Switched at Birth
2
A Dark Truth (2013)
1
Bones1
Bachelorette (2013)
1
How I Met Your Mother
Braveheart (1995)
1
*Cancelled at least 3+ years
(final season)
2
3
1
(Home video released)
How People Use® Media: Subscription Streaming Video Services 2013
Multichannel video programming distributors
Mainstreaming Streaming 2013
For advertisers, making sure that ads are shown to relevant targets at
a relevant time in over-the-top content is a continuing concern. Aside
from the known issues with time-shifted viewing, the circumstances of
use and ad receptivity are likely to impact strategy based on what device
someone happens to be using. For advertising buyers and sellers, as with
any new media service, there is the question of audience measurement.
Media’s experience with browser-based video has shown that just being
digital is no panacea for audience measurements.
The key balancing act for content creators is making sure that the
revenue offered for delivering TV programs and movies directly to
consumers via “over-the-top” options is worth the potentially negative
effect on the revenue inputs that currently provide the majority of video
profits (such as regular telecasts, physical discs, and MVPDs who pay
carriage fees for programming). With usage still heavily in favor of these
“traditional” sources, over-the-top impact is still relatively minor. But as
over-the-top continues strong growth – and considering that OTT users
are typically above-average media users and spenders – the profile and
impact of over-the-top viewing to media strategy will be much greater
than its relative size.
GfK has been a leader in helping media stakeholders, both in the USA
and globally, understand the adoption, use, and implications of overthe-top and other alternative means of viewing. We look forward to
continuing to offer innovative solutions to help our clients form effective
short- and long-term strategies in this space.
For more information or if you wish to purchase a report,
please contact:
David Tice
SVP, Consulting, Media & Entertainment
david.tice@gfk.com
T +1 908 497 8075
www.gfk.com
Mainstreaming Streaming 2013
TV Programs vs. Movies Watched
TV Programs vs. Movies Watched
- Total TV/Movie Segments Viewed by Service Used - Total TV/Movie Segments Viewed by Service Used -
TV
Movies
Total Segments
Netflix Segments
19%
23%
81%
77%
Hulu Plus Segments
Amazon Segments
4%
21%
79%
96%
Use of Subscription Streaming Services, 2013
– Total –
30
29% “ever”
Less than once a month
Once a month or more
2%
20
Sony Playstation
Network
2%
27
1%
1%
27
0%
0%
Epix
2%
Ultraviolet
6%
Vudu
6%
X-Box Live
Marketplace
7%
1%
Amazon Prime/
Instant Video
23
Netflix (streaming)
0
3%
Hulu Plus (Hulu’s
for-pay service)
9%
10
Blockbuster.com
27%
Mainstreaming Streaming 2013
Ever Use Online Video-on-Demand Service, 2010 – 2013
Total
Total
Total
Total
Gen Y
Gen X
Boomers
2010 2011 20122013 13-3334-47 48-54
Any
13%26%30%34% 44% 31% 16%
Trend in Monthly Use for Viewing, 2010 and 2013
70
62%
2010
2013
60
50
48%
40
38%
32%
30
26%
8%
19%
16%
11%
7%
6%
11%
9%
6%
Cncted
HDTV (TV)
Digital
device (TV)
Smartphone
(Mbl)
Cncted
Blu-ray (TV)
0%
PC-to-TV
(PC)
0
1% 1% 1%
VCR (TV)
Blu-ray
(VGS)
Downloads
(PC)
DVD (PC)
Tablet (Mbl)
Cncted VGS
4% 3% 3% 3%
2% 1% 2%
Blu-ray (PC)
2%
Slingbox (PC)
2%
TV card (PC)
2%
7%
PPV (TV)
2%
4%
DVD (VGS)
Cable VOD
(TV)
Blu-ray (TV)
8%
8%
iPod (Mbl)
9%
Cncted DVR
(TV)
9%
Streaming
(PC)
DVR (TV)
DVD (TV)
<1%
10
5
19% 18%
17%
17%
12% 11%11%
10
0
21%
20%
20