Video Trends Report Q2 2019
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1 VIDEO TRENDS REPORT Q2 2019 © 2019 TiVo Corporation. Introduction 2 Survey Methodology Q2 2019 Survey Size INTRODUCTION 5,340 Geographic Regions U.S., Canada TiVo seeks real consumer opinions to uncover key trends relevant to TV providers, digital publishers, advertisers and consumer electronics manufacturers for our survey, which is administered quarterly and examined biannually in this Age of Respondents published report. We share genuine, unbiased perspectives and feedback from viewers to give video service providers 18+ and industry stakeholders insights for improving and enhancing the overall TV-viewing experience for consumers. TiVo has conducted a quarterly consumer survey since 2012, enabling us to monitor, track and identify key trends in viewing This survey was conducted in Q2 2019 by a leading habits, in addition to compiling opinions about video providers, emerging technologies, connected devices, OTT apps and third-party survey service; TiVo analyzed the results. content discovery features, including personalized recommendations and search. TiVo conducts this survey on a quarterly basis and publishes a biannual report evaluating and analyzing TiVo (NASDAQ: TIVO) brings entertainment together, making it easy to find, watch and enjoy. We serve up the best key trends across the TV industry. 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 delivers a passionate group of watchers to increase viewership and engagement across all screens. Go to tivo.com and enjoy watching. For more information about TiVo’s solutions for the media and entertainment industry, visit business.tivo.com or follow us on Twitter @tivoforbusiness. © 2019 TiVo Corporation. Section One 3 SWIMMING IN A SEA OF CHOICES Year after year, more and more video content providers and services enter the market, and consumers are drowning in options. Plenty of households still hold tight to traditional cable packages and satellite TV, but often supplement them with additional video services. The Subscription Video on Demand/ Ad-Based Video on Demand (SVOD/AVOD) market is getting crowded: Netflix, HBO NOW, Amazon Prime Video and Hulu have surged in popularity and usage in recent years, and this year Disney, Apple, WarnerMedia and even DC Universe are throwing themselves into the fray. Meanwhile, free video streaming services like YouTube, and social media channels such as Facebook and Snapchat continue to offer even more choices for content consumption. As a result, multi-service usage continues to grow— increasing by 14 percent since 2018. Number of Services +14% 2019 7.2 YoY 2018 6.3* 2017 ~5 2016 ~4 *Yearly averages were reweighted to match the number of responses from 2019 for consistency. © 2019 TiVo Corporation. Section One 4 TOP SERVICE BUNDLES SHOW ONGOING ADOPTION OF VARIOUS BUSINESS MODELS ACROSS PAY TV, SVOD AND AVOD As the video ecosystem fragments, consumers continue to choose a wide combination of service types in order to unlock the content they value. Here are the most popular video bundles consumers are utilizing today, all of which include some form of free, ad-supported (AVOD) offering (i.e., YouTube, free TV network apps and/or social media video). Netflix YouTube Free Video* Pay TV YouTube Pay TV 29.1% Facebook 24.2% YouTube Pay TV Netflix Snapchat Facebook 40% Facebook YouTube Snapchat Pay TV YouTube Pay TV Free Video* 19.5% Facebook 24.7% 19% YouTube Facebook 22.7% Snapchat Netflix Netflix Pay TV Free Video* Facebook YouTube 17.8% Free Video* YouTube 19.5% Facebook Pay TV 26.7% 21.2% *from network sites or apps © 2019 TiVo Corporation. frequently than other services. thanotherservices. frequently more far butstill muchlessoften, percent) orapps(15.4 sites ad-supported and free (18.5percent) Netflix videos (19.2 percent), YouTube free turnto Viewers percent). (40.4 ahead ofthepack surges TV cable/satellite series, regularly-watched tried-and-true, episodesof finding new to When itcomes place. second adistant for close intherace were videos(23.6percent) YouTube free and PrimeVideo(25.5percent) Amazon percent), (26.9 TV Cable/satellite before. seen never seriesthey’ve orTV movies new to find useNetflix actively they indicated ofrespondents percent Nearly 39 videos. YouTube andfree Prime Video, andAmazon Netflix like services SVOD TV, cable/satellite for aclearpreference showed respondents survey content, find actively useto they whichservices When asked DISCOVERY DOMINATE ANDYOUTUBE SVOD TV, PAY Section One Section © 2019 TiVo Corporation. Corporation. TiVo © 2019 38.9% Netflix 26.9% Cable/Satellite TV seenbefore never you’ve Series Movies/TV New 25.5% Amazon Prime Video Free YouTube videos Rental shows/movies Hulu On Demand Free sites or apps HBO GO Hulu + Live TV HBO NOW Antenna TV 18.5% Netflix 40.4% Cable/Satellite TV watch regularly of seriesyou Episodes New Amazon Prime Video Free YouTube videos Rental shows/movies Hulu On Demand Free sites or apps HBO GO Hulu + Live TV HBO NOW Antenna TV Netflix Cable/Satellite TV seen already you’ve shows movies/TV Rewatching Amazon Prime Video Free YouTube videos 18% Rental shows/movies Hulu On Demand Free sites or apps HBO GO Hulu + Live TV HBO NOW Antenna TV 5 Section One 6 CONSUMER ADOPTION OF vMVPDS SINKS While SVOD giants continue to report Subscription OTT Services 2018 2019 subscriber increases, Virtual Multichannel We asked consumers which of these subscription OTT services they use currently. Video Programming Distributor (vMVPD) services such as YouTube TV, DIRECTV 12% -28.5% NOW, PlayStation Vue and Sling TV YoY are beginning to stall or are slowly -3% decreasing. Still, nearly one-third of 8.5% YoY respondents states they still don’t use 6.9% 6.7% 6.3% -34.1% any form of SVOD service. YoY -24.7% -6.5% YoY YoY 4.1% 4.4% 3.3% 3.2% 3% 30.5% YouTube TV Hulu + Live TV DIRECTV NOW PlayStation Vue Sling TV don’t use any SVOD services © 2019 TiVo Corporation. Section One 7 VIEWERS WATCH LIVE TV THE MOST, BUT OTT IS CLOSE BEHIND Watch One Hour or More regularly Don't Watch regularly 65.8% 2018 2019 44.8% 39.9% 52.4% 46.8% 27.8% 41.5% 25.4% of respondents watch one hour or more of 19.3% sports across all three platforms 10.3% Live TV OTT DVRed Live TV OTT DVRed Live TV accessed from OTT/ Previously recorded/ Live sports/ channel guide subscription services DVRed TV sporting events © 2019 TiVo Corporation. Section One 8 Content Genres COMEDY IS THE FAVORITE We asked consumers their preferred content genres. CONTENT GENRE TV Movies While consumers continue to view a wide variety of content genres across both TV and Comedy 61.1% Comedy 56.9% movies, comedy tops the charts for both content types (61.1 percent for TV and 56.9 percent for movies), followed closely by drama and action/adventure. Drama 51.5% Action/Adventure 44.7% TELEVISION SCREENS: NOT JUST FOR SHOWS ANYMORE 41.6% Action/Adventure Drama 45.4% While 79 percent of survey respondents use their TV screens to watch TV shows, and nearly half use them to watch live sports, TV owners also commonly use their screens to stream Crime Drama 40.1% 39.8% YouTube videos (34.1 percent), play video games (26.7 percent), watch personal videos Suspense/Thriller (14.5 percent) and cast video content via the internet (13.5 percent). Only 1.9 percent of Suspense/Thriller 39.7% respondents indicated that they do not own a TV. Science Fiction 33.8% Documentaries 39.5% Crime Drama 33.3% TV Screen Use Crime/Mystery 37.1% Crime/Mystery 30.8% Watch TV shows 79.2% News 34.8% Fantasy 27.8% Watch live sports 48.7% Science Fiction 33% Stream YouTube videos 34.1% Romantic Comedy 26.3% Play games on gaming console 26.7% History 32.5% Documentaries 26.2% Watch personal videos 14.5% Sports 31.9% Comedy Drama 25.2% Cast video content via internet 13.5% Comedy Drama 30.2% Horror 24.9% © 2019 TiVo Corporation. Section One 9 FREE CONTENT (POPULARITY AND USAGE OF AVOD) IS STILL IN ITS INFANCY As more and more free video platforms and high-quality content become available, ADOPTION OF LINEAR AVOD SERVICES IS GROWING consumers are watching more of it. Survey respondents indicated they spend the most time watching SVOD services, but free video from social media platforms such as Facebook As consumers grow tired of paying for subscription services, linear AVOD services are on the and Snapchat garner the most individual views per week, and follow close behind SVOD in rise. Pluto TV (+4.5 percent), Tubi TV (23.9 percent) and Philo TV (14.3 percent) all gained time spent. viewers year over year. +4.5% YoY +23.9% YoY 2018 Average Views Average Time 18.5% 17.7% 16.2% 2019 per week in minutes per view 13% AVOD 0.7 17.3 vMVPD 2.3 61.2 Pluto TV Tubi TV SVOD 2.4 80.4 Three-quarters of survey respondents watch free streaming content from YouTube. At 63.8 ADOPTION OF TV NETWORK SITES AND APPS IS percent, Facebook is not far behind. DECLINING SLOWLY Across the board, fewer people have TV network apps downloaded onto their mobile devices YouTube 75.1% in 2019 than in 2018. More than 65 percent of respondents don’t use TV network sites or apps Facebook 63.8% to view content at all. Free video* 41% 10.4% Snapchat 29.1% 2018 9.1% 8.5% 7.8% 7.7% 7.3% 2019 Roku Channel 24.2% 6.1% 5.3% 4.8% 4.9% Crackle 20.76% +41.7% YoY ABC A&E CNN Cartoon Network CBC *from network sites or apps © 2019 TiVo Corporation.