Streaming Viewers Aren’t Going Anywhere APRIL 2021 The pandemic’s effects on video-streaming habits are far-reaching and here to stay 55% 93% 72% of respondents spend of respondents claim to of respondents expect to more time watching content be using the same number of spend the same or more time via streaming services than services as—or a higher watching content via streaming they would have if not for number than—they would have services once pandemic-related the pandemic if not for the pandemic restrictions ease Source: BCG consumer survey of approximately 2,000 users of over-the-top media services, February 2021. Note: This research is based on a set of streaming services selected for the purpose of the survey; not all streaming services are accounted for. All figures are rounded. User penetration is concentrated in core subscription services, with a long tail of noncore services Subscription video on demand Advertising-based video on demand Core Noncore Sports 70 59 41 HBO aspires to Long tail of 36 “core” services in smaller, “noncore” terms of penetration services 20 13 11 12 11 7 6 6 5 5 7 8 8 7 7 3 0 0 0 3 2 2 2 1 0 0 3 2 1 0 Plex Tubi Hulu Vudu AMC+ DAZN Netflix ESPN+ Crackle BritBox Disney+ Shudder Pluto Pluto TV IMDb TV Starzplay Acorn TV Acorn HBO Max HBO Showtime Apple TV+ Apple Discovery+ Popcornflix Crunchyroll Boomerang Peacock (free) PGA Tour Live Tour PGA Peacock (paid) WWE Network CBS All Access All CBS Sundance Now UFC Fight Pass Fight UFC NFL Game Pass Game NFL CuriosityStream NBA League Pass League NBA Shout! Factory TV Factory Shout! YouTube Premium YouTube MLB Extra Innings MLB IFC Films Unlimited Films IFC Amazon Prime Video Prime Amazon Allblk Allblk (formerly UMC) The Criterion Channel Criterion The Respondents currently using or paying for a particular service (%) service (%) a particular for paying or using currently Respondents The Roku Channel (and app) (and Channel Roku The Source: BCG consumer survey of approximately 2,000 users of over-the-top media services, February 2021. Note: This research is based on a set of streaming services selected for the purpose of the survey; not all streaming services are accounted for. Core refers to the four leading over-the-top media services, in terms of user penetration. CBS All Access is now Paramount+. Advertising-based services are seeing an increase in usage Average number of advertising-based video services per person Advertising-based video PRIOR RESEARCH BCG’S CONSUMER SURVEY viewership is up more than (2021) 0.2 0.2 0.7 300% Prepandemic During the pandemic The increase is driven by the rise in usage of such services as The Roku Channel, Vudu, IMDb TV, Plex, Popcornflix, and Shout! Factory TV—as well as their inclusion in this year’s survey. Sources: BCG consumer survey of approximately 2,000 users of over-the-top media services, February 2021; prior BCG analysis. Note: This research is based on a set of streaming services selected for the purpose of the survey; not all streaming services are accounted for. Methodology, services, and the number of services represented differ between analyses shown. Ad-based video services are more popular among users of four or more streaming services User penetration by service Users of one Users of two or three Users of four or more Respondents currently using or paying for a service (%) OTT service (%) OTT services (%) OTT services (%) Pluto TV 13 2 6 23 Tubi 12 3 6 22 The Roku Channel (or app) 11 2 5 20 Crackle 8 1 3 16 Peacock (free) 8 2 5 14 IMDb TV 7 0 2 15 Vudu 7 1 2 15 Source: BCG consumer survey of approximately 2,000 users of over-the-top media services, February 2021. Note: This research is based on a set of streaming services selected for the purpose of the survey; not all streaming services are accounted for. All figures are rounded. OTT = over-the-top media service. Noncore and sports-related services are at the greatest risk of cancellation Subscription video on demand Core Noncore Sports 31 22 22 10 24 21 22 13 15 16 14 16 14 13 12 8 11 15 21 7 7 7 8 13 9 6 8 8 7 5 5 10 9 5 7 7 5 3 2 2 3 3 Core Noncore Sports Netflix Disney+ Hulu Amazon HBO Apple CBS Peacock YouTube Showtime ESPN+ Prime Video Max TV+ All Access (paid) Premium “I’m only subscribed to/using the service to watch the shows Brand penetration among respondents (%) that I want and will cancel/stop using when I have done so.” 70 59 41 36 20 11 7 6 6 5 7 “I intend to cancel/stop using the service.” Source: BCG consumer survey of approximately 2,000 users of over-the-top media services, February 2021. Note: This research is based on a set of streaming services selected for the purpose of the survey; not all streaming services are accounted for. Core refers to the four leading over-the-top media services, in terms of user penetration. Figures are rounded, which accounts for apparent discrepancies in totals. CBS All Access is now Paramount+. Users are most likely to get their streaming recommendations from friends and providers Respondents’ ranking of their top three content-recommendation sources (%) Friends 43 20 12 74 Providers (e.g., through of respondents selected friends’ 23 25 20 68 a “watch next” feature) recommendations as one of the top 74% reasons behind content selection Advertisements 16 17 18 51 (e.g., TV or billboards) of respondents ranked Recommendation websites 9 16 17 42 these recommendations as (e.g., IMDb, Rotten Tomatoes) 43% the primary reason Newspapers and magazines 5 8 9 22 (e.g., The New York Times) Other 4 1 3 9 Ranked 1st Ranked 2nd Ranked 3rd Source: BCG consumer survey of approximately 2,000 users of over-the-top media services, February 2021. Note: Respondents were asked: “How do you typically find recommendations on what to watch when you are about to watch something via one of your streaming services?” Figures are rounded, which accounts for apparent discrepancies in totals. The key takeaways for video service providers $ Customer retention Content is still king. Discoverability Free may be a is paramount— Viewers will keep counts. winning strategy. especially for new their subscriptions if Providers need to The success of customers. platforms offer more stand out to gain ad-based video on Switching is easy, and content they want attention. demand indicates the the willingness to do so to watch. advertising model is high. is back. Source: BCG analysis..