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What's Tv Worth?

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What's Tv Worth? WHAT’S TV WORTH? APRIL 2016 1 13 3 We surveyed 1,502 TV consumers… • Age 16 to 74* • Watch at least 5 hours of TV per week • Have broadband at home • U.S. census balanced • Data collection completed in March 2016 • Prior to 2015, the age range for this study was 16-64. On slides with trending to 2014 or 11 earlier, the data is for viewers age 16-64 The New Normal: the average viewer combines multiple TV sources to make their own TV package ELECTRONIC SELL THROUGH SVOD ONLINE CHANNEL OR MCN SCREENS MVPD AND CONNECTORS Live VOD DVR TV Everywhere 2 “What’s TV Worth” tracks how consumers choose, use, and allocate their time across these options Which TV platforms consumers are using, USAGE independently and together The screens viewers watch on, and the devices DEVICES they use to connect their TVs to the internet Which sources viewers see as their “default” – the DEFAULT first thing they turn on when they want to watch Which TV platforms, and which specific brands, VALUE do consumers perceive to be most valuable Which features and attributes drive viewers to use CHOICE certain TV sources over others 3 Executive Summary Overview of Key Findings 4 Is 2016 the year the dust begins to settle? 5 SVOD is emerging as the dominant model for consuming TV Rising Usage High Perceived Value More users are adopting SVOD Perceptions of major SVOD platforms platforms, and many are using more continue to rise, while pay TV is flat than one % RATE “GOOD” use at least one SVOD, OR “EXCELLENT” VALUE 68% up from 47% in 2015 67% Ç Netflix streaming subscribe to 2 or more 61% SVODs – twice as many 37% 60% Ç as last year (19%) Amazon Prime 67% 49% prefer streaming subscribe to 3 or more, 46% 2016 PayPay TV TV 14% 43% up from 2% last year 2015 Ç Significantly higher than 2015 6 For the first time, more online viewing happens on TV sets than any other device WHICH DEVICES HAVE YOU USED TO WATCH ONLINE TV SHOWS? 72% TV Set 70% Computer 42% Tablet 36% Smartphone 7 Pay TV subscriptions are still ubiquitous • 89% of respondents have an MVPD subscription—unchanged since 2013 8 But traditional linear viewing continues to drift farther from the hub of the TV universe 2016: % WHO DEFAULT TO LIVE TV 2014 Age 16-64 Live TV’s position All viewers 43% 55% as the default source for TV continues to fall Netflix subs 35% 43% Age 18-24 27% 32% 9 State of the Cord Trends in MVPD usage 10 The proportion of viewers with some kind of pay TV subscription remains at about 90% DO YOU HAVE A PAY TV SUBSCRIPTION? Among viewers age 16-64 5% 5% 4% 5% 5% 6% 5% 6% 89% 90% 89% 89% 2013 2014 2015 2016 Cord Nevers: Have never had a pay TV subscription Cord Cutters: No pay TV, but have had in the past Subscriber: Have cable, satellite, or fiber TV subscription Q2A: Do you currently have any of the following television services in your home? 11 Q2B: Have you ever had a cable, satellite, or fiber optic TV subscription in your name? Among viewers 16-74, there’s no change since 2015 in proportion that subscribe to premium networks PREMIUM CHANNELS SUBSCRIPTION Among 16-74 year olds with a Pay TV subscription 39% 29% 26% 18% 18% 4% None of these 47% 2016 Q2E. Thinking about your service today, which of the following premium subscription channels do you currently get with your service from [PROVIDER]? 12 Millennials are just as likely as the average viewer to subscribe to premium networks PREMIUM CHANNELS SUBSCRIPTION Among 16-74 year olds with a Pay TV subscription TOTAL Age 16-74 Millennials Users Users 39% 42% 44% 46% 29% 27% 31% 32% 26% 25% 28% 31% 18% 16% 19% 18% 18% 16% 18% 18% Ç Significantly higher than total È Significantly lower than total Q2E. Thinking about your service today, which of the following premium subscription channels do you currently get with your service from [PROVIDER]? 13 Pay TV subs with Netflix or Amazon are more likely than average viewers to subscribe to premium networks PREMIUM CHANNELS SUBSCRIPTION Among 16-74 year olds with a Pay TV subscription TOTAL Age 16-74 Millennials Users Users 39% 42% 44% 46% 29% 27% 31% 32% 26% 25% 28% 31% 18% 16% 19% 18% 18% 16% 18% 18% Ç Significantly higher than total È Significantly lower than total Q2E. Thinking about your service today, which of the following premium subscription channels do you currently get with your service from [PROVIDER]? 14 Most pay TV subscribers still have HD and DVR (also the case in 2015) AS PART OF YOUR SERVICE, DO YOU HAVE…? Among 16-74 year olds with a Pay TV subscription HD service 69% DVR 56% Neither 16% Q2F: As part of your service, do you have…? 15 As in previous years, fewer than 10 percent say they definitely play to cut their pay TV service HOW LIKELY ARE YOU TO HAVE A PAY TV SUBSCRIPTION A YEAR FROM NOW? Among 16-64 year olds with a Pay TV subscription 30% 30% 29% Definitely Will 69% still have my subscription Definitely or Probably 39% 41% 42% Probably Will will 24% 22% 22% Might or might not 7% 7% 7% Definitely/Probably Won’t 2016 2015 2014 Q2J1: One year from now, how likely are you to still have at least some service from [PROVIDER FROM Q2A]? 16 Is Pay TV Vulnerable? The of online TV options, today and in the future 17 As in past years, those with no pay TV are split roughly evenly between cord cutters and cord nevers WHICH OF THE FOLLOWING BEST DESCRIBES YOU? Among 16-74 yea r o lds Those without a pay TV subscription are split roughly evenly between cord cutters, and those who have never had pay TV Subscriber: Currently have a cable, satellite, or telco TV subscription Cord Cutter: 6% Don’t have pay TV now, but did in the past 89% 5% Cord Never: Don’t have pay TV now, and never have Q2A. Do you currently have any of the following television services in your home? Q2B. Have you ever had a cable, satellite, or fiber optic TV subscription in your name? 18 Cord cutters most often mention financial drivers-–but more than half say they switched to online TV sources WHICH OF THE FOLLOWING BEST WHICH WERE MAJOR REASONS* FOR DESCRIBES YOU? DROPPING YOUR PAY TV SERVICE? Among 16-74 yea r o lds Among cord cutters The service wasn’t worth the money 85% Subscriber: To save money 71% Currently have a cable, satellite, or telco TV subscription Decided to use online 53% 6% sources of TV instead 89% Not watching enough TV 22% 5% Moved and decided to do without Pay TV 14% Decided to use DVDs and other non- online sources 12% There was a change in my living situation 10% *Note: Reasons under 10% not shown Q2A. Do you currently have any of the following television services in your home? Q2B. Have you ever had a [PAY TV] subscription in your name? Q2D: How much of a reason was each of the following for dropping your subscription? 19 Compared to last year, cord cutters were more likely to mention issues related to cost or value WHICH OF THE FOLLOWING BEST WHICH WERE MAJOR REASONS* FOR DESCRIBES YOU? DROPPING YOUR PAY TV SERVICE? Among 16-74 yea r o lds Among cord cutters The service wasn’t 85% worth the money 68% Subscriber: To save money 71% Currently have a cable, satellite, 60% or telco TV subscription Decided to use online 53% 6% sources of TV instead 53% Not watching enough TV 22% 89% 20% 5% Moved and decided to 14% do without Pay TV 6% Decided to use DVDs and other non- 12% online sources 10% 2016 There was a change 10% in my living situation 24% 2015 *Note: Reasons under 10% not shown Q2A. Do you currently have any of the following television services in your home? Q2B. Have you ever had a [PAY TV] subscription in your name? Q2D: How much of a reason was each of the following for dropping your subscription? 20 “Cord nevers” also mentioned financial reasons first, followed by online alternatives WHICH OF THE FOLLOWING BEST WHICH WERE MAJOR REASONS FOR DESCRIBES YOU? NEVER HAVING PAY TV? Among 16-74 yea r o lds Among cord nevers You want to save money 81% Don’t think it is worth the Subscriber: money 80% Currently have a cable, satellite, There’s enough from online or telco TV subscription sources 61% 6% 89% You don’t watch that much TV 39% 5% Enough to watch from non- online sources 34% Never got around to signing up 7% Any other reason 9% Q2A. Do you currently have any of the following television services in your home? Q2B. Have you ever had a cable, satellite, or fiber optic TV subscription in your name? Q2E1: How much of a reason is each of the following for why you’ve never had cable,21 satellite, or fiber optic service in your Financial reasons in particular were mentioned more often in 2016 WHICH OF THE FOLLOWING BEST WHICH WERE MAJOR REASONS FOR DESCRIBES YOU? NEVER HAVING PAY TV? Among 16-74 yea r o lds Among cord nevers 81% You want to save money 62% Don’t think it is worth the 80% Subscriber: money 53% Currently have a cable, satellite, There’s enough from online 61% or telco TV subscription sources 50% 6% 39% You don’t watch that much TV 89% 27% 5% Enough to watch from non- 34% online sources 26% 7% Never got around to signing up 3% 9% Any other reason 2016 6% 2015 Q2A.
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