Consumers prefer traditional content providers
over new market entrants
The television’s popularity as the go-to entertainment device
may be ending, according to “Digital Video and the Connected
Consumer,” a new research report from Accenture (NYSE:ACN). The
television was the only product category to see uniform,
double-digit usage declines across different types of media
worldwide among viewers of nearly all ages. It is rapidly being
replaced as consumers turn to a combination of laptops, desktops,
tablets and smartphones to view video content.
The report, developed for communications, media and technology
companies, found that video consumption – anytime, anywhere – has
become mainstream, accelerating the decline of traditional TV
viewing. Viewership for long form video content, such as movies and
television on a TV screen, has declined by 13 percent globally over
the past year and by 11 percent in the United States. Similarly,
the report found sports viewership on TV screens declined by 10
percent globally and nine percent in the United States.
Nearly all age brackets reported double-digit declines in TV
viewing globally, with 14- to 17-year-olds abandoning the TV screen
at the rate of 33 percent for movies and television shows and 26
percent for sporting events. This decline continues for 18- to
34-year-olds at 14 percent for movies and television shows and 12
percent for sporting events, and for 35- to 54-year-olds, at 11 and
nine percent, respectively. It does, however, flatten among the 55
and older crowd, at six percent and one percent respectively.
”We are seeing a definitive pendulum shift away from traditional
TV viewing,” said Gavin Mann, Accenture’s global broadcast industry
lead. “TV shows and movies are now a viewing staple on mobile
devices of all shapes and sizes, thanks to improved streaming and
longer battery life. The second screen viewing experience is where
the content creators, broadcasters and programmers will succeed or
fail.”
To that point, the report found that more than a third (37
percent) of consumers own a combination of smartphones,
laptops/desktops, and tablets. Among those who plan to buy a TV, 61
percent expect to buy a connected TV, and 25 percent are planning
to buy a 4K TV, an increase of seven percent over last year. These
purchasers report that they use these devices to access all kinds
of content on a daily basis.
As consumers view more content online, the quality of online
service is becoming a growing concern. According to Accenture’s
analysis, 89 percent of consumers watch long form video on
connected devices, but many report issues with their viewing
experience. The primary complaint among more than half (51 percent)
of respondents watching online video was poor Internet service.
They complained about too much advertising placement (42 percent);
buffering, or the time it takes for video to start playing, (33
percent); and loss of sound or distortions during play (32
percent). At the same time, respondents said they would pay for
online video service if it included greater content variety, less
advertising, and better video quality.
The research also found, however, that traditional broadcasters
have a strong advantage over new market entrants, as respondents
showed a preference for the dominant TV broadcaster, satellite and
cable providers versus newer Internet providers. When consumers
were asked if Pay TV channels or Video on Demand services from
brands like Apple, Netflix and Google were an appealing offer, they
scored those options scored significantly lower than traditional
broadcasters.
“New entrants, regardless of their brand, will have to prove
their service quality to consumers to capture significant market
share,” said Mann. “Consumers prefer established brands, and
broadcasters need to capitalize on this while the iron is hot by
aggressively investing in multi-device platforms and securing
partnerships that leverage their footprint into the mobile space. A
simple repackaging of the same programming available anywhere may
not do it. It needs to be unique and special.”
Viewing is happening simultaneously across multiple devices,
with 87 percent of consumers using more than one device at a time.
Globally, the smartphone is the most frequent companion device
scoring 57 percent overall. This trend is particularly strong for
millennials, with 74 percent of 14- to 17-year-olds using a
combination of TV/smartphones during viewing. This is not the case
in North America, where a laptop/computer was used more frequently
for simultaneous viewing (59 percent vs. 42 percent for
smartphones).
“Understanding consumers and ensuring decision-making is
centered on consumer insights will be increasingly key to success,”
said Mann. “This relentless focus on consumer optimization will
have an impact on all elements of a broadcaster’s business, from
content decision-making to implementing converged operating models
and exploiting the data advantage. The future leaders in media and
entertainment will be those who listen to the audience and can
tailor their content and services to this new reality.”
Methodology
The research was conducted online in October and November 2014,
with 24,000 consumers in 24 countries: Australia, Brazil, Canada,
China, Czech Republic, France, Germany, India, Indonesia, Italy,
Japan, Mexico, Netherlands, Poland, Russia, Saudi Arabia, South
Africa, South Korea, Spain, Sweden, Turkey, United Arab Emirates,
United Kingdom, and the United States.
The sample size in each country was representative of the online
population, with respondents ranging in age from 14 to 55 and over.
The survey polled respondents about their usage, attitudes and
expectations related to digital device ownership, content
consumption, broadband constraints, digital trust and the Internet
of Things.
About Accenture
Accenture is a global management consulting, technology services
and outsourcing company, with more than 323,000 people serving
clients in more than 120 countries. Combining unparalleled
experience, comprehensive capabilities across all industries and
business functions, and extensive research on the world’s most
successful companies, Accenture collaborates with clients to help
them become high-performance businesses and governments. The
company generated net revenues of US$30.0 billion for the fiscal
year ended Aug. 31, 2014. Its home page is www.accenture.com.
AccentureGary Morgenstern, +1 862 579
7662gary.a.morgenstern@accenture.comorBurson-MarstellerAnthony
Suarez, +1 212 614 4331anthony.suarez@nof9.com
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