On-demand Is Killing The TV Star
The television world is changing faster than we think
A recent survey of more than 20,000 TV viewers around the globe found that consumers are spending an increased amount of time watching online video-on-demand and streaming video to mobile devices - and they're doing so without traditional paid TV providers.
In the past few years, service providers such as Comcast and Dish TV have come under increased pressure due to the digital shift in consumer behaviour. Viewers now demand the freedom to watch what they want, when and where they want it, without being tied to bloated and expensive TV bundles.
Consumer eyes shift to video on demand
"ConsumerLab TV and Media Report" also found that 35% of all TV and video viewing is already on-demand, and that figure is rising sharply. The report also states that consumers currently spend on average 6 hours per week streaming on-demand movies, TV series, and programs online - double the figure of 2011. The above figures are hardly surprising given the explosion of connected devices in recent years amongst a digital-savvy generation who are fuelling the video-on-demand drive - the study shows that ⅔ of teenagers’ TV and video viewing is done entirely via smartphone, tablet, or a laptop. In worse news for traditional TV providers, it’s not just teenagers driving demand - older viewers are also increasingly consuming media using their smart devices, with 71% of older viewers now connected. While 82% of people aged between 60 and 69 years old and 60% of Generation Y still watch conventional TV everyday, the numbers are increasingly dwindling each year. Other than the popularity of smart devices, another huge factor in traditional TV’s decline has been the emergence of on-demand services such as Netflix, Amazon Prime, and HBO.
More bad news for big cable
The ConsumerLab survey - conducted on more than 20,000 consumers in 20 major markets around the world - also revealed that 62% of traditional TV viewers have difficulties in finding the programs they want to watch. This is in stark contrast to the On-demand services where 87% of subscribers admittedly ‘binge view’ their favourite shows at least once a week.
Other nails in the coffin of cable TV included poor service levels and high prices when compared to On-demand services.
The good news for the entertainment industry is that people are actually consuming more content and media than ever before - albeit in very different ways. Unless traditional TV can keep pace with technological advancement, we may be about to see it go the way of the music industry.