With Ad-Tolerance at an All-Time High, TiVo's Video Trends Report Finds Consumers Shifting Gears on TV Subscriptions
Entertainment pricing is soaring, leading consumers to re-evaluate their spending
In addition to the increase in ad-supported video on demand (AVOD) and free ad-supported streaming TV (FAST) consumption, 20.0% of respondents shared that they feel they have too many services and 62.5% admitted to reducing their entertainment spend in light of recent economic inflation. In response to the industry shift from a growth to a profit mindset, and the change in consumer viewing behavior, video service providers started developing “hit” original series to draw in new subscribers and retain current customers. Even with these efforts, the gap between users adding and canceling subscription video on demand (SVOD) services has decreased by 4.4 percentage points as consumers are now canceling services almost as often as they are adding new ones. Consumers are showing they are not afraid to leave a service if they can’t justify the cost – making cost the leading reason for SVOD cancellations (21.3%). On the other hand, Pay TV churn risk declines as 63.7% of respondents are cord-revivers, resubscribing to Pay TV in the last 6 months, with 33.8% reporting that they couldn’t get all the entertainment they were looking for without it.
“The post-covid
As consumers continue to proceed with caution on their entertainment journeys, video service providers will continue to work to capture the attention of viewers and keep their retention rates climbing. With the entertainment industry shifting to focus more on profit over growth, 2024 will be a year of change as video service providers step into the future of what it means to watch video.
Additional TiVo Video Trend Report Highlights
- Let’s Get Personal: When it comes to content recommendations, personalized recommendations from streaming services still fall short of word of mouth and organic interactions in daily life as 45.9% of respondents go to 2 or 3 streaming apps before settling on something to watch.
- TVOD Is Sticking Around: While movie theaters are making a well-deserved comeback, consumers are still interested in using transactional video on demand (TVOD) services to enjoy new releases from home, with 52.3% of respondents saying they used TVOD services in 2023 – an increase from the year prior.
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You Can
Watch Where ?: With consumers watching an average of 4.7 hours per day, many are splitting their time watching content on their phones (60.3%), TVs (78.2%), and even in their vehicles (38.0%). In addition to traditional entertainment like TV shows and movies, social video is rising in popularity climbing from 14.7% in Q4 2022 to 17.1% in Q4 2023. - Your Phone and TV are a Match Made in Heaven: QR codes remain the most commonly used interactive ad method, as well as the one most commonly recognized by respondents (40.2%). Gen Z is most likely to tap an interactive commercial on a tablet or phone (40.7%) while Millennials are the most likely to utilize QR codes in a TV show or commercial (35.9%).
Find more information from the latest Q4 2023 Video Trends Report here.
TiVo is also an expert in video trends and TV viewership data. TiVo TV Viewership Data includes second-by-second data captured from set-top-boxes within households across all 210 DMAs in the
Methodology
Since 2012, TiVo has surveyed consumers to uncover key trends relevant to TV providers, digital publishers, advertisers, and consumer electronics manufacturers. The latest TiVo Video Trends Report surveyed 4,436 adults 18 and older living in the
About TiVo
TiVo brings entertainment together, making it easy to find, watch and enjoy. We serve up the best movies, shows and videos from across live TV, on-demand, streaming services and countless apps, helping people to watch on their terms. For studios, networks and advertisers, TiVo targets a passionate group of watchers to increase viewership and engagement across all screens. TiVo is a wholly owned subsidiary of
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