Podcast #1174: Video Trends

On this week’s show we discuss the Tivo Video Trends Report and we read your emails and and take a look at the week’s news.

News:

• Streamers bet on food partners to help reduce churn
• Samsung Reveals Its Reach: Free Streaming TV Service Is As Big as the Major Players
• A Growing Number of Cord Cutters Don’t Plan to Buy a New Streaming Device in 2024, Spelling Trouble for the Tech Giants

Other:

• 10 of the world's most expensive turntables | What Hi-Fi?

TiVo Video Trends Report

As we look at the content ecosystem in Q2 2024, consumers are noticeably scaling back their spend on content and as a result, the number of sources they utilize for video. In this iteration of the Video Trends Report, we continue to see respondents supplement their video bundle and save money by turning to ad-supported services. In fact, the ratio of SVOD consumers utilizing lower-cost, ad-supported tiers has increased across the board, while the share of consumers utilizing ad-free SVOD services has dropped almost 18% year-over-year.

Some key findings:

• 84.5% of respondents are prone to browsing before landing on a show or movie.
• 77.8% of all respondents noted that they are at least tolerant of ads.
• 63% of respondents noted reducing their entertainment spending.
• 61.7% of respondents noted using at least one AVOD/FAST service in Q2.
• 22% of Pay TV subscribers cut the cord then later resubscribed to traditional TV service.

Average number of video sources reverting back to 2022 levels

Q2 22/Q2 23/Q2 24

Average Total Services 9.9 10.9 9.1

Avg Paid Services 6.7 6.9 5.7

Avg Non-paid Services 3.2 4.0 3.4

Household income does have an impact on the number of sources used, but it does not appear to be as substantial of a driver as demographics like age or geography. At the low end of less than $20K you have about 10 sources for 2023 and 2024. Households with incomes of $200K or more saw an increase from 10 sources in 2023 to about 14 in 2024. 

Percentage of Respondents Who Watch on Each Device

Q2 22/Q2 23/Q2 24

TV 81.0% 78.9% 81.3%

Smartphone 50.6% 60.2% 51.8%

Tablet 29.2% 30.9% 25.3%

Computer 36.6% 37.3% 33.7%

When it comes to discovery methods, the percentage of those who find out about new TV shows or movies from commercials has declined 3% year-over-year. In comparison, word of mouth and recommendations from friends continue to remain the most commonly used method of discovery.

Top Methods of Discovery 

% of all respondents/YoY Change

Word of mouth / friends 50.1% +4.8%

Commercials or ads that run during other shows 40.6% -2.9%

Social media 39.7% +2.3%

Streaming apps / home screen / carousel ads 39.3% +5.9%

Suggestions in my pay-TV channel guide or menus 27.9% +1.0%

Print, outdoor and/or online banner advertisements 14.3% +6.9%

News articles or stories outside social media 9.7% -6.7%

Emails or newsletters from streaming services 9.6% -0.1%

Radio 7.8% +0.7%

Daily viewership is largely consistent; Importance of local news drops 5% YoY. Fifty Four percent think local content is somewhat or very important compared to 59% in Q2 2023. Twenty One percent of all time spent watching video is spent watching local content, compared to 22.6% in Q2 2023.

27% of car owners report wa