Spectators Persist in Reducing Their Subscription to Online Streaming Platforms (TiVo)
Tech Buzz: Cost-Conscious Streamers Simplify and Streamline!
Hey there! Here's a hot scoop on the latest TV trends. In a surprising turn of events, it seems that cost-conscious consumers have been trimming down their streaming services, preferring a smaller but high-quality content library over a multitude of options.
TiVo, the Xperi-owned media and entertainment company, unveiled these findings in its Q4 2024 Video Trends Report. The report showed a significant decrease in entertainment spending, with the average number of services used plummeting from 11.1 to 9.9.
Among those who axed their Subscription Video-on-Demand (SVOD) services in the last six months, a whopping 33.9% confessed that they did so because they weren't using it enough, and another 33.8% because of price increases. This shift, coupled with a plateau in hours spent watching video, underscores how cost-conscious consumers are spending the same amount of time consuming content on traditional TV and streaming, albeit on fewer platforms.
In the face of economic uncertainty, it seems that the entertainment industry will face increased pressure to deliver engaging, quality content. According to Geir Skaaden, Xperi's chief product and services officer, consumers are prioritizing a simpler, more value-driven experience. As consumers face a potentially similar spending and entertainment consumption trend seen during the pandemic, the industry can expect a focus on providing value through relevant and timely content.
Intriguing, huh? But wait, there's more! Streaming services aren't the only ones feeling the love. Pay-TV is seeing a revival, with fewer people planning to cut the cord. This uptick in interest stems from the broad, unrestricted access to premium content, especially sports, which has long been a consumer favorite.
FAST (Free Ad-Supported Streaming TV) services are also gaining traction, with 65% of respondents using FAST services and nearly half watching FAST linear channels. It seems that the appeal of free or low-cost streaming options with advertising support is growing.
The report also touched upon password-sharing, with 34.6% of respondents admitting to sharing an SVOD password for at least one service. Interestingly, about half of respondents preferred when streaming services release an entire season at once, compared to a slower release cadence of an episode a week.
Lastly, personalized ads are in demand. With 41.6% of respondents favoring personalized ads, advertisers face mounting pressure to deliver relevant content that resonates with consumers across both linear and connected TV platforms.
Want to learn more? Check out TiVo's latest Q4 2024 Video Trends Report here. Since 2012, TiVo has provided valuable insights to TV providers, digital publishers, advertisers, and consumer electronics manufacturers, surveying thousands of adults in the U.S. and Canada to uncover key trends in viewing habits, consumer opinions, and emerging technologies. Stay tuned for more updates!
- In an attempt to simplify their viewing experiences, cost-conscious consumers are opting for a smaller number of streaming services that offer high-quality content.
- The digital media industry, including OTT platforms, faces the challenge of delivering engaging content that appeals to cost-conscious consumers, as they prioritize value in their entertainment choices.
- Despite the growing popularity of streaming services, traditional Pay-TV is experiencing a revival, partly due to the broad access to premium content, such as sports.
- As a result of these trends, Free Ad-Supported Streaming TV (FAST) services are gaining traction, with an increasing number of consumers utilizing them for free or low-cost streaming options.
- Consumers are showing a preference for personalized ads across both linear and connected TV platforms, putting pressure on advertisers to deliver relevant content that resonates with viewers.
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