Menu
Video on demand continues to kill big cable

Video on demand continues to kill big cable

A new global survey of more than 20,000 people shows that they value on-demand programming, mobile video, and lower prices, and traditional TV viewership continues to decline.

The television world is changing even faster than many of us think. A survey of more than 20,000 TV viewers around the globe found that consumers spend more time watching video-on-demand and streaming video to mobile devices, and they're doing without traditional pay TV providers.

The marked shift in viewing habits during the last few years will likely put even more pressure on the Comcasts and Dish TVs of the world, as consumers demand the freedom to watch what they want, where and when they want, without being tied to bloated, expensive cable TV bundles.

Consumer eyes shift to video on demand

Ericsson's 2015 "ConsumerLab TV and Media Report" found that consumers now spend 6 hours per week streaming on-demand TV series, programs, and movies online — more than double the equivalent 2011 figure. When you include recorded and downloaded content, 35 percent of all TV and video viewing is on-demand.

Teenagers are very likely to watch video on mobile devices. The study found that nearly two thirds of teenagers' total TV and video viewing is done via smartphone, tablet, or laptop, and 53 percent of millennials watch TV on these devices. Older people aren't immune to the lure of the small screen, either; across all age groups the number of consumers watching video on their smartphones has increased 71 percent since 2012, according to the report.

Generational differences are significant when it comes to conventional pay TV, as well. People between the ages of 60 and 69 years old say they watch conventional TV every day, but only 60 percent of millennials do. That's bad news for pay TV providers that want to maintain their subscriber bases.

Binge watching, something that used to mean repeated trips to the video rental store, is also on the rise. Nearly nine out of ten consumers— 87 percent to be exact — who subscribe to on-demand services such as Netflix, Amazon Prime, and HBO, binge view at least once a week.

You probably know people who have never had a cable subscription, and you probably think they're not interested in streaming TV. However, 22 percent of the so-called "cord-nevers (as opposed to cord-cutters who have abandoned cable) already pay for a la carte video offerings.

Bad news for big cable

A lot of reasons exist for why people are abandoning conventional pay TV, including high prices, bundles with unattractive channels, and bad service. Here's another good reason: As many as half of the people who watch what Ericsson calls "linear TV" say they have trouble finding the programs they want to watch. That number swells to 62 percent of viewers age 25 to 34, a key demographic.

Ericsson conducted more than 20,000 online interviews in 20 major markets around the world, and with the aid of Nielsen collected data from more than 25,000 Android and iPhone users.

The good news for the entertainment industry is people want to watch TV. They don't, however, want to watch it in the same old ways, and that's bad news for cable and satellite providers.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments