Research: More Than 52% of Broadband Households Report Watching Internet Video on a Connected TV

A majority (52%) of U.S. broadband households are watching online video on a TV that is connected to the internet, according to research from Parks Associates.

The study, 360 View: Digital Media and Connected Consumers, also finds that watching TV or movies at home is the most popular leisure activity among U.S. broadband households, with 55% selecting this among their top two favorite leisure activities.

“While the total number of hours consuming videos has declined, consumers are watching more internet video on the largest screen available,” said Billy Nayden, research analyst with Parks Associates, in a statement. “The number of hours consumers report watching video on a TV increased for the first time since 2014, with connected devices enabling internet video services on TV and shifting consumers away from PC and mobile viewing. As OTT competition becomes a battle for the living room, the challenge for device makers and content producers is finding the correct product mix to maximize both profit and utility.”

The study found subscriptions are the dominant business model for OTT services.

As more services emerge, many stakeholders fear an impending subscription overload in U.S. households, according to Parks.

“As consumers’ taste for OTT experimentation wanes, they will start to resist the push to add another monthly subscription to their households,” Nayden said in a statement. “Many providers are starting to lead with freemium and ad-based models, in anticipation of this pushback.”

Other findings were:

  • 19% of consumers subscribe to either Netflix, Hulu or Amazon Prime Video and another OTT service, compared to 13% in 2017;
  • Consumers watched 25.7 hours of video per week in 2018, down from 29.5 hours per week in 2016;
  • Local broadcast/channels and programs are the most enjoyed type of programming.

Report: U.S. Continues to Lead Global Online Video Consumption

With the United States the birthplace of subscription video-on-demand, YouTube and other over-the-top video platforms, it should be no surprise that it leads Europe in the consumption of video on smart phones and TVs.

But Europe is catching up, according to new data from Ampere Analysis.

The London-based research firm found that 32% of broadband users in the U.S. streamed video on their smartphone in the third-quarter (ended Sept. 30) compared to 23% in Europe. Consumption of OTT video on the TV was 66% in the U.S. and 60% in Europe.

Indeed, Europeans now consume more online video on the computer, including laptops and tablets (65%) than do Americans (61%).

“As online video viewing in the U.S .continues to grow, consumers are watching TV and film content on a wide range of devices, especially smart TVs and smartphones,” analyst Hannah Walsh said in a statement.“While the online video sector in the US has developed faster than European markets, a similar trend can be seen in both regions.”

Ampere found that 47% of U.S. survey respondents preferred using OTT video platforms (19% very strongly) to watch movies and TV shows compared to 35% (11%) in Europe.

“As [SVOD] continues to progress in European markets, the proportion of consumers who watch video on smartphones will rise, alongside the number of consumers who use online video services as their main way to watch TV,” said Walsh.

 

Report: Third-Quarter Streaming Video Consumption Up 63%

Consumption of streaming video – via over-the-top platforms such as Netflix, Amazon Prime Video and Hulu — continues to mushroom.

New data from digital measurement firm Conviva found a 63% increase in third-quarter (ended Sept. 30) video viewing hours from the previous-year period. Video program plays increased 53%.

“Streaming TV consumption shows no signs of slowing down, and publishers have stepped up to the plate, delivering better quality and reliability that viewers have come to expect,” Conviva CEO Bill Demas said in a statement. “The demand for quality is pushing connected TVs to the top in terms of device share, commanding more than 50% of total viewing hours at the expense of PCs that have lost 7%, while mobile remains relatively flat.”

Indeed, the report — based on Conviva’s claims of tracking 1 trillion data events daily around the world – found that live sports (i.e. NFL football) streaming increased 3% in September, driven by Prime Video’s Thursday Night Football webcasts. Amazon said more than 8 million people collectively streamed the first four games of the season.

Connected TV video plays increased 145%, while viewing hours increased 103%. Online TV platforms such as Sling TV, YouTube TV, DirecTV Now, Spectrum TV Plus, PlayStation Vue, Pluto TV and Fubo TV helped mushroom video plays 292%, including 212% increase in viewing hours from the previous-year period.

And consumers are streaming longer-form (TV shows and movies) entertainment, with 111% increase in video plays and 93% increase in video hours streamed.

Finally, Roku remains the No. 1 streaming media device, commanding 40% market share in viewing hours.