Consumers are using more video services and transitioning from subscription to ad-supported models, according to the latest TiVo Video Trends Report.
Researchers found that for the first time the average number of services used had hit double digits. Consumers are using 11.6 video services, an increase from 8.9 a year ago and 9.9 in the second quarter of 2022.
TiVo found that 26.6% of respondents dropped a subscription video-on-demand (SVOD) service during the past half-year, an increase of 8.0% year over year. The increase is being driven by ad-supported video on demand (AVOD) and free ad-supported streaming TV (FAST).
Commentary in the press release pointed to the economy in general and inflation in particular as causes. The report found that totally free models, including AVOD and FAST, had grown by almost 70% during the past year. Sixty-four percent of consumers use at least one AVOD or FAST service, up from 60.0% last year. Millennials are driving the increase.
“We’re at an inflection point in the digital entertainment industry as consumers seek to take advantage of the flood of content choices and service types available but now wrestle with the paradox of choice,” Scott Maddux, the vice president of global content strategy and business at TiVO parent Xperi said in a press release. “Discovery shouldn’t be a chore, and it is imperative that entertainment platforms and video technology providers prioritize simplicity for consumers in order to make discovery and viewing experiences as enjoyable as possible.”
Other highlights in the report:
- More than half of respondents (53.0%) prefer the whole season of a TV show to be available at once, compared to only 24.7% who prefer episodes to be released one per week.
- Millennials averaged 16.3 sources compared to Gen Z with 12.7 sources and Gen X with 12.2 sources.
- Eighteen percent said they evaluate and adjust their entertainment spending every month or more compared to only 13.0% a year ago.
- The economy and inflation has led 30.0% of respondents to reduce their overall entertainment spending, with 74.0% saying they’re slightly or much more likely to look for entertainment at home rather than going out.
Streaming – especially subscription models — reached what may be its heights during the COVID-19 pandemic. In April 2020, Parks Associates said that there were 6 million new streaming households added during the previous year, during which the emergency escalated.