June 11, 2020
During the peak of the coronavirus pandemic, use of subscription video-on-demand services reached 56% in domestic homes. New data from TransUnion says that percentage should remain around 45% as economies and businesses re-open.
As consumers’ use of paid streaming services such as Amazon Prime, Hulu, Netflix and Apple TV increases, so too has the amount of time spent on the platforms. The report found daily use on platforms increased from upwards of two hours daily prior to the pandemic to an average upwards of four hours through May 18.
More than 30% of consumers surveyed spent at least five hours daily streaming media. Among 18- to 29-year-olds, daily SVOD use skyrocketed 66%.
“The use of digital platforms has accelerated as younger generations seek more control and flexibility over how they consume content,” Matt Spiegel, EVP and head of the media vertical at TransUnion, said in a statement.
Spiegel said consumption is occurring across multiple channels and devices as consumers shift away from traditional pay-TV cable and broadcast.
Consumers subscribing to three to five streaming services increased to 48%, up from 37% prior to COVID-19. Another 53% of survey respondents said they use a streaming service in place of a pay-TV bundle.
TransUnion found that Internet-connected televisions are the most popular streaming device with 37% of respondents. The 18–29 age group also preferred mobile devices (25%) for streaming while the 30–44 demographic had a preference for OTT devices (19%).
Older demos (60+) favored Smart TVs (41%), followed by desktop computers. However, streaming as a whole may still be a fairly new concept as 19% indicated they do not stream content at all.
“As more consumers leverage digital channels and look for entertainment options in the comfort of their homes, it’s important to take a pulse check as to how consumer behaviors are changing — and have changed since the onset of the pandemic,” Spiegel said. “These insights will be instrumental to advertisers as they adapt their positioning and targeting in the marketplace to create more relevant experiences.”