Survey: Almost Half of Consumers Frustrated by Growing Number of Entertainment Subs and Services

Nearly half of consumers (47%) are frustrated by the growing number of subscriptions and services required to watch the entertainment they want, according to Deloitte’s 13th edition of the “Digital Media Trends survey.” Meanwhile, more than half of consumers (57%) express frustration when content disappears from their streaming libraries.

While consumers know exactly what they want to watch (69% of the time), they also expressed frustrations with content discovery across platforms:

  • Forty-three percent of consumers give up on the search for content if they can’t find it in a few minutes;
  • Forty-eight percent say content is hard to find across multiple services;
  • Nearly half (49%) say the sheer amount of content available makes it hard to choose what to watch.

Consumers are also increasingly wary of how companies handle their data, with 82% citing they don’t believe companies do enough to protect their personal data, according to the study. Conversely, consumers overwhelmingly believe they are responsible for protecting (49%) and owning (88%) their data. Very few respondents (7%) believe that the government should play a role in protecting their data.

While streaming services may be frustrating to consumers, the survey also found consumer dissatisfaction with high volumes of advertising, pushing them away from pay TV.

  • Three quarters (75%) of consumers say they would be more satisfied with their pay-TV service if there were fewer ads, and 77% indicated ads on pay TV should be under 10 seconds;
  • Eighty-two percent believe there is excessive repetition of ads;
  • Forty-four percent of consumers cited “no ads” as a top reason to subscribe to a new paid streaming service;
  • While consumers indicated eight minutes per hour of ads as the right amount, they also report that 16 minutes or more is when they would stop watching.

“With more than 300 over the top video options in the U.S., coupled with multiple subscriptions and payments to track and justify, consumers may be entering a time of ‘subscription fatigue,'” said Kevin Westcott, vice chairman and U.S. telecom and media and entertainment leader, Deloitte LLP, in a statement. “As media companies and content owners wrestle with how to retain and grow their subscriber base, they should not only continue to strengthen their content libraries, quality, distribution and value, but also keep a close eye on consumer frustrations, including advertising overload and data privacy concerns.”

The average U.S. consumer now subscribes to three streaming video services, with 43% of consumers subscribing to both streaming and traditional pay television (TV) services, according to the study, which noted strong growth in streaming video subscription services (69%) and streaming music services (41%). Pay TV remained relatively flat with 65% of U.S. households subscribing, and 29% paying for live TV streaming services. High-quality, original content continues to be a dominant factor in streaming video growth, with 57% of current U.S. streaming consumers (and 71% of millennials, ages 22-35) subscribing to streaming video services to access original content.

The survey also found that 37% of U.S. millennials binge-watch every week, watching an average of four hours in a single sitting. Consumers also continue to spend more time streaming video from their paid services (46%) versus free video streaming services (29%). Consumers are not only binge-watching in high numbers, they are also streaming movies, with 70% of millennials reporting they stream movies weekly, and 40% doing so daily. Social media remains supreme with millennials (54%) in the search for new TV shows.

Report: YouTube Top ‘Most Intimate Brand’ Among Millennials

YouTube ranked the “most intimate brand” among millennials for the first time, climbing from third last year, according to MBLM’s Brand Intimacy 2019 Study, a study of brands based on emotions.

The firm defines brand intimacy as something that leverages and strengthens the emotional bonds between a person and a brand.

“YouTube ranked 10th with millennials just two short years ago and has steadily made its way to the top,” said Mario Natarelli, managing partner, MBLM, in a statement. “The brand has demonstrated an ability to entertain a diverse millennial audience through its extensive content. It is also continuing its expansion of services, including the launch of YouTube Music in 2018, as it finds new ways to connect with consumers. Millennials in particular bond strongly with the media and entertainment industry, and YouTube is doing a good job at building a brand that caters to the wants and needs of this audience.”

Apple and Netflix ranked as the second and third most intimate brands for this generation. Comparatively, in MBLM’s 2018 study, Apple placed first followed by Disney and YouTube.

The other brands that rounded out the top 10 were, in order: Disney, Nike, Target, Xbox, PlayStation, Google and Walmart. Millennial men selected Xbox, PlayStation and Spotify as their top three and millennial women selected Target, Amazon and Disney.

The Brand Intimacy 2019 Report, to be released in full Feb. 14, contains the most comprehensive rankings of brands based on emotion, analyzing the responses of 6,200 consumers and 56,000 brand evaluations across 15 industries in the United States, Mexico and the United Arab Emirates, according to MBLM.

Brightcove: 58% of Consumers Stream Video at Least Once a Week

We live in an over-the-top video world.

New data from Brightcove, the Boston-based cloud services company, has released global consumer consumption preferences across generations when it comes to live and on-demand streaming video content.

The company found that 58% of consumers stream content at least once a week via a smart TV or external streaming device, 51% on a mobile device, and 50% on a computer or laptop.

As expected, millennials (19 to 36 years old) spearhead streaming video habits across all categories at 72%, 73%, and 65%, respectively.

The results are based on a commissioned YouGov online survey of 10,502 adults from the United States, U.K., France, Spain, Australia, Germany, Canada, and UAE between Sept. 5th and Sept. 27.

When analyzing all consumers’ (aged 18+) online video habits and preferences, the report found the most influential factor for consumers who are considering a new streaming service is cost (53%), followed by personal viewing interests, i.e. content (31%).

The top five reasons consumers will try out a new streaming service include a free trial (42%), a particular show (38%) exclusive content (29%), cross-device capability (28%), and user experience (26%).

TV is still the top device to consume content on (other options include mobile and computers) for regularly scheduled news (68%), regular season sports (69%), breaking news (54%), special sports events, including title fights and championship games (66%), concerts (53%), and fashion shows (45%).

Advertisements and technical issues are the key spoilers for live streaming experiences, with too many ads (37%) and poor image or video quality (35%) being the top reasons for respondents having abandoned a live stream, followed by buffering (33%) and the live stream crashing (32%).

“Across all generations, consuming online video is now an integral part of our daily entertainment routines,” Sara Larsen, CMO, Brightcove, said in a statement. “Today, we’re seeing technology-savvy consumers stepping into decision making roles, making it even more critical to understand the motivations behind these decisions.”

When analyzing millennial video streaming preferences, Brightcove found that 44% describe themselves as “browsers” when looking for something to watch, while 26% think of themselves as decisive.

Millennials feel far more satisfied consuming content through streaming service providers: 68% feel streaming service providers continually provide content they want to watch, compared to 55% who feel the same of broadcast networks and 53% for cable networks.

Notably, just 11% of millennials would embrace a subscription-based model to consume sports content, and only 24% would embrace an ad-based model. Finally, 63% of millennials share their streaming logins with at least one other person.

“Today’s reality is every generation is consuming online video more than ever, so we want to ensure our customers have the knowledge and data needed to reach massive cross-generational audiences in a way that allows them to better connect with their viewers,” said Larsen.

Millennials Devoted to Amazon for Tech Shopping

A new study from consumer-tech communications firm Max Borges Agency has found that millennials are highly devoted to online retail giant Amazon. In a survey of 1,108 U.S. millennials conducted May 30 to June 14, fewer than one in four said they would buy a tech product elsewhere if it wasn’t available through the online retailer, according to the “How America’s Largest Living Generation Shops Amazon” report.

When asked if they would give up sex and alcohol for a year versus giving up Amazon, 77% choose Amazon over alcohol, and 44% chose Amazon over sex.

Prime shipping was a huge motivator for three of four millennials in purchasing tech on Amazon. In an analysis of shopping habits, the report found that 78% purchased between one and five tech devices on Amazon in the past year; 61% shopped while awake in the middle of the night; and 57% shopped while working. Almost half of respondents shopped while using the bathroom, and 19% admitted to purchasing tech goods while intoxicated.

Tech purchases outweighed all others, at 61%, followed closely by clothing, shoes and jewelry at 60%. The survey found smartphones were least likely to be purchased on Amazon, as respondents still look to brand retailers for assistance, pricing and compatibility. Headphones and mobile accessories, like phone cases, dominated the category, at 54% and 53%, respectively, while only 27% shopped for virtual assistants like the Amazon Echo.

Other millennial shopping patterns uncovered by the report include

  • 71% shopped for tech products on their mobile device;
  • 45% open the Amazon app at least once a day;
  • 84% discover new products on Amazon;
  • 87% research products on Amazon;
  • 90% consult Amazon Customer Reviews before making a tech purchase on the site.

Nearly half who discover consumer tech brands or products on a blog or news site will go to Amazon to buy it.

For higher-cost items, millennial shoppers typically spend more than a week to research it, with two in five consulting expert reviews, and three in four visiting the brand’s site before ultimately buying on Amazon, according to the report.

Customer reviews are a major factor in millennial purchasing decisions, with only 8% likely to buy a product with a three-star Amazon review, rising to 47% with a four-star review.

“Shopping on Amazon has become second nature for many of us, and has become a powerful hub for the online purchase of consumer tech products,” said Lindsay Stuart, VP of business intelligence at Max Borges Agency. “Where millennials are concerned, we wanted to show exactly how relevant this retailer is to the group, and why brands need to understand their research and shopping habits, and how better to serve this generation.”

The full report is available at https://www.maxborgesagency.com/how-americas-largest-living-generation-shops-amazon.

 

 

Parks: Millennials Love OTT Video

Considering the over-the-top video market was created due to millennials cutting the cord with traditional pay-TV, it’s no surprise the demo covets services such as Netflix, Amazon Prime Video and Hulu.

New data from Parks Associates finds that more than 85% of millennials in U.S. broadband households subscribe to at least one OTT video service.

“Overall penetration of subscription OTT video services among millennials has topped out, suggesting that those households that want such a subscription already have one or more. The more interesting and important question is how many subscriptions they will keep,” Brett Sappington, senior director of research, said in a statement. “More than one-fourth of millennials subscribe to three or more OTT services, and more than 50% subscribe to at least two.”

The trend is also visible, though less pronounced, among the other demos as well. Use of subscription streaming video among Baby Boomers and older generations grew more than 10% from 2016 to 2017.

“For consumers, self-aggregating content is simply part of the entertainment experience, particularly millennial households,” said Hunter Sappington, researcher at Parks. “Their evaluation criteria for services, and brand loyalty, differs from that of previous generations.

The younger Sappington contends pay-TV providers can take advantage of the self-aggregation trend, which can include software-recommended content, social media and mobility.

“Providers need to understand the evaluation criteria consumers use for their OTT services, which can vary from household to household,” he said.

 

Study: Young People More Engaged by Brand-Boosting YouTube Videos Than Traditional Advertising

Brands that want to reach Gen Z and young millennials might have a better shot by placing products in influential YouTube videos.

That’s according to “neuroscience intensity research” from Fullscreen conducted in partnership with research lab MediaScience. The study evaluated Gen Z and young millennials’ attention to and response to traditional brand advertising versus YouTube branded influencer videos, as well as the impact of the two kinds of brand boosting. It used physiological response tracking tools in a lab setting to monitor 128 subjects ages 13-24 while they watched both a TV sitcom and YouTube videos and were exposed to advertising as it would naturally appear in those two separate environments. Study metrics included eye tracking, biometrics, facial coding and post-exposure survey.

Key findings include:

  • Branded influencer videos are on par with the 30 second TV spot on biometric intensity and joy.
  • While viewing branded influencer videos, 93% of the time consumers’ eyes were locked on the content; this is 30% higher than the experience viewing a brand pre-roll ad. This high attention also correlated to 2 times higher levels of brand recall than brand pre-roll ads.
  • Teens are 18% more likely to “like” branded influencer videos than young millennials.
  • Branded influencer videos delivered higher levels of brand attitude (10% more than TV; 9% more than pre-roll) and brand loyalty (10% more than TV; 13% more than pre-roll) than traditional brand formats.
  • Brand Influencer videos yield stronger recommendation levels compared to TV (10% more) and pre-roll (13% more).

 

“Studying the biometric responses of Gen Z and young millennials allows us to understand what types of advertising formats are making an emotional connection and impact,” said Pete Stein, general manager, Fullscreen, in a statement. “Our study found that influencer branded content delivers TV-like emotions, higher attention than pre-roll, and stronger brand impact across the board that hints at a deeper level of connection between audience and format. Today’s youth audiences are a complex mix of ad avoiders and brand advocates. Marketers need nuanced approaches to effectively impact them.”

Deloitte Report: More Than Half of U.S. Households Subscribe to Video Streaming Service

American consumers’ appetite for streaming video continues to grow, with 55 percent of U.S. households now subscribing to at least one video streaming service, a 450 percent increase since 2009, according to a report from Deloitte.

Americans watch 38 hours per week of video content (39 percent of which is streamed), nearly the equivalent of a full-time job, according to Deloitte’s Digital Media Trends Survey. With more than 200 streaming video-on-demand options in the United States, the average streaming video subscriber is paying for three services, resulting in U.S. consumers collectively spending $2.1 billion per month on SVOD services. Nearly half (48 percent) of all U.S. consumers stream television content every day or weekly, up 11 percent year-over-year, according to the report.

The 12th edition of Deloitte’s Digital Media Trends survey provides insight into how five generations of U.S. consumers interact with media, products and services, mobile technologies and the internet. This year’s U.S. data was collected in November 2017 and employed an online methodology among 2,088 consumers.

The survey found pay TV subscriptions declined for the first time in recent years with 63 percent of households still subscribing to a traditional Pay TV service, down from 75 percent. Pay TV’s decline is especially pronounced among Generation Z (ages 14-20), Millennials (ages 21-34) and Generation X (ages 35-51).

“Consumers now enjoy unparalleled freedom in selecting media and entertainment options and their expectations are at an all-time high,” said Kevin Westcott, vice chairman and U.S. media and entertainment leader, Deloitte LLP, in a statement. “The rapid growth of streaming services and high quality original content has created a significant opportunity to monetize the on-demand environment in 2018.”

Pay TV is too expensive for what it offers, according to more than two-thirds of consumers. Nearly half (46 percent) of all pay TV subscribers said they are dissatisfied with their service and 70 percent of consumers feel they get too little value for their money. Among respondents who said they no longer have a pay TV subscription, 27 percent reported they cancelled their service within the last year. Furthermore, 22 percent of millennials say they have never subscribed to a pay TV service. Twenty-two percent of all consumers without pay TV say they don’t watch enough TV to justify the expense and another 19 percent say they simply cannot afford it. Fifty-six percent of current pay TV subscribers say they keep their pay TV because it’s bundled with their home internet access.

“As video streaming and demand for original content continue to grow, traditional and premium cable broadcasters will continue to rethink their business models,” Westcott stated. “Media companies are increasingly going direct-to-consumer with their own digital streaming services and snackable content. Ultimately, one challenge we see is that consumers may be reluctant to pay for exclusive content on top of their other paid subscription services and this may lead to some form of re-aggregation as limits on consumer spending could potentially hinder the growth of content platforms.”

This year’s data indicates a convergence of media behavior across three key demographics, according to the report. Gen X emerged as cutting-edge adopters of digital media, embracing the digital media behaviors already adopted by Gen Z and millennials. Deloitte calls this combined demographic group “The MilleXZials.” Other findings:

  • Seventy percent of Gen Z households had a streaming subscription, closely followed by millennials at 68 percent and Gen X at 64 percent, respectively;
  • About 70 percent of Gen Z and millennials stream movies compared with 60 percent of Gen X on a weekly basis;
  • Binge-watching behavior also witnessed a convergence among MilleXZials, with 91 percent of Gen Z, 86 percent of millennials and 80 percent of Gen X binge watching TV shows and more than 40 percent of millennials binge watching weekly (an average of seven episodes and six hours in a single setting);
  • Ninety-six percent of MilleXZials multitask while watching TV.

“Millennials were the first generation to embrace streaming media and watching video content on smartphones,” said Dr. Jeff Loucks, executive director, Deloitte Center for Technology, Media and Telecommunications, Deloitte LLP, in a statemen. “Some hoped that as millennials got older, they would settle down and watch pay TV. Instead, their Gen X parents are acting more like millennials, using streaming services, watching TV shows, movies and sports on smartphones and binge watching.”

Lastly, consumers are increasingly concerned about putting their personal data online. The study found 69 percent of consumers believe that companies are not doing everything they can to protect their personal data. However, 73 percent of all consumers said they would be more comfortable sharing their data if they had some visibility and control, and 93 percent of U.S. consumers believe they should be able to delete their online data when they want.