This probably surprises no one, but more and more consumers, especially younger demographics, are turning more to digital video for their entertainment.
From YouTube to Netflix, Hulu to Amazon Video, and an entire collection of various services in-between, 83% of consumers are now watching at least one “on demand” video a month according to a recent survey.
Limelight Networks reports some interesting details below:
- Millennials are far more likely to subscribe to over-the-top (OTT) services. When asked how many online services such as Netflix and Hulu to which they currently subscribe, more than 40 percent of Millennials subscribe to at least one vs. 32 percent of older generations. In addition, 31 percent of Millennials subscribe to two or more OTT services as compared to 18 percent of older counterparts.
- Cord-cutting is increasingly driven by content availability. In its April 2015 survey, Limelight found most consumers would terminate their pay and cable TV services “because the price keeps going up.” The latest survey showed this is changing, with access to content—getting the content directly from content owners, live events more prevalent online, and content availability via antenna— becoming more of a factor than it was in the past.
- Millennial patience with video buffering may be waning. As compared to April 2015, Limelight found a 35 percent increase in the number of respondents who would abandon a video after only one buffering event, indicating an erosion of patience for video interruptions.
Additional key findings revealed in the report include:
- Apps on Smart TVs are the go-to source for viewing video on the television. Despite the rash of OTT devices on the market giving consumers more choices than ever for how they watch their online video content on their televisions, the Smart TV still represents the device that most consumers use for watching OTT content.
- When it comes to OTT devices, Xbox is leading the market with Sony close behind. Based on survey responses, the Xbox is clearly leading the market for “multi-function OTT devices” at 28 percent, followed by Sony’s PS4 at 23 percent and Apple TV at 16 percent. The survey also included the new Amazon Fire TV Stick, which achieved 8 percent of market share, just slightly behind Roku at 11 percent.
- Fewer people are sharing video online, and Facebook’s lead is shrinking. As compared to April, people who said they do not share video online increased by 20 percent. For those who did share, those using Facebook, Twitter and Pinterest declined, while YouTube held steady.