Smartphone video data consumption nearly tripled from 2Q’15 to 2Q’16 with young adult Millennials leading the way, according to new market research from NPD Group released Oct. 4.
Well over half of Millennials that NPD surveyed (56%) reported making video calls via their smartphones, 14 points above the year-ago level, NPD highlights in a press release. The number that said they shopped via smartphone rose 9 percentage points to 40%.
NPD analyzes consumer use of connected TVs and tablets, as well as smartphones, in its Connected Intelligence Application & Convergence Report.
PC ownership and usage is declining among Millennials (18-34) even as smartphone ownership and usage rises. Young adults are increasingly turning to smartphones as they engage in a variety of online activities, especially when it comes to watching online video (video calling, posting and streaming). That underlies a shift among Millennials towards signing up for larger data plans, NPD notes.
“Year-over-year we are seeing smartphone usage steadily increase among Millennials, especially as it relates to video features, which are often data-heavy actions,” John Buffone, executive director, industry analyst, NPD Connected Intelligence, was quoted as saying.
“As next-gen smartphones come to market, video sharing, streaming and calling will continue to grow, and this has spurred new offers from mobile carriers in an effort to grow their consumer base.”
Smartphone Video Data Consumption
Cellular data video consumption rose 130% from 2Q’15-2Q’16, the market research provider says. Total mobile video data consumption rose 192% over the period when WiFi networks are included to total 15GB of data per smartphone user per month. That’s up from 5GB from 2Q’15.
Mobile carriers introducing zero-rated data plans that allow smartphone users to stream video without using up their data allowance will add momentum to the trend, according to NPD. “Mobile carriers are leveraging these plans to appeal to consumers who are often concerned about data overages and to stand out from the competition,” commented Brad Akyuz, director, industry analyst, NPD Connected Intelligence.
“As mobile carriers continue to promote new offerings that encourage video streaming and with over two-thirds of consumers opting for phones that are ideal for video, with screens 4.7-inch or greater, we expect to see data usage continue to grow.”
Mobile data revenue accounted for nearly half of total mobile telecom revenues in 2015, according to recently released market research from Pyramid Research. Pyramid expects increases to continue, forecasting that mobile data revenue will increase 7% annually and exceed $600 billion per year come year-end 2020.