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Online Subscription Video Services Driving Connected TV Activities: Futuresource Consulting


News provided by

Futuresource Consulting

29 Jan, 2015, 11:33 GMT

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LONDON, January 29, 2015 /PRNewswire/ --

Futuresource Consulting's latest wave of Living with Digital consumer research highlights the continued shift in entertainment behaviour amongst respondents. One key trend is the emergence of TV as an increasingly connected device, either directly on the connected TV or through ancillary devices such as digital media adaptors (DMA) or connected set-top-boxes, both of which have emerged as very important devices.

"Connected TV activities and DMA uptake is increasingly driven by subscription video on demand (SVoD) services, which is why video viewing through these devices is more apparent in the UK and USA," says David Sidebottom, Senior Analyst at Futuresource Consulting. Connectivity rates for connected TVs have risen to 79% of connected TV owners, with 63% accessing a service at least once a week.

The Connected Device 

"Viewing any type of video is now the most popular entertainment activity on tablets at 57% of tablet owners across all countries, overtaking playing games. 24% of tablet owners now watch paid-for video, which is the highest in the USA at 34%," says Sidebottom.

Digital Media Adaptors (DMA) have seen a big jump in ownership levels in this series of research and is finally making inroads outside of the USA. Ownership levels across all countries doubled to 10% of total respondents, with notable growth in the UK and Germany. Households with kids and OTT service users are significant drivers of uptake, US Netflix subscribers are four times more likely to own a DMA than non-Netflix subscribers. Multiple ownership is also evident, with around 40% of DMA households having more than one DMA.

"Cord-shaving (Removing Pay-TV packages rather than cancelling) movie packages is also increasingly evident, with 17% of US subscribers dropping a movie service compared to 13% in the previous wave, with 19-25 year olds and households with kids much more likely to do this," says Sidebottom. "Of these cord-shavers, 21% say they are doing so to use online subscription services instead, up from 13% in the previous wave."

Music Listening Dominated by Streaming Services 

Music streaming is well and truly mass market and the most popular form of music consumption in all countries with 29% of the total base listening to free music streaming services and 42% Internet radio. The US leads the way with 50% of respondents listening to any type of streaming music service compared with just 21% in Germany. However, only 5% of the total base pay for a music streaming subscription service.

The information in the above press release is taken from the latest report in the Living with Digital series from Futuresource Consulting, which continues to focus on device ownership, usage and consumers' digital entertainment behaviour, with emphasis on content usage and consumption.

Notes

Futuresource Consulting is a specialist research and knowledge-based consulting company, providing organisations with insight into digital imaging, consumer electronics, education technology, entertainment media, broadcast, storage media and IT. With a heritage stretching back to the 1980s, the company delivers in-depth analysis and forecasts on a global scale, advising on strategic positioning, market trends, competitive forces and technological developments, ensuring clients have access to the information that will produce the best possible results. http://www.futuresource-consulting.com

Authorised use of information

All information provided by Futuresource in any form is proprietary information that belongs to Futuresource and is protected by UK and international copyright law. Except as outlined below, direct or indirect reproduction of information, in whole or in part and by any means, is prohibited without the express written consent of Futuresource.

Members of the press may use a press release in its entirety or take segments from it as necessary; they may also use a graph, a slide, or a section of a supplied research report less than fifty words long, provided all text is identified as "Source: Futuresource" and all graphics are credited with "Futuresource, copyright 2015".

Futuresource Media Contact

For industry comment, forecasting and trends contact James Edwards on:

Email: james.edwards@futuresource-hq.com
Web: http://www.futuresource-consulting.com

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