With Ad-Tolerance at an All-Time High, TiVo's Video Trends Report Finds Consumers Shifting Gears on TV Subscriptions
02 Avril 2024 - 9:00PM
Business Wire
Entertainment pricing is soaring, leading
consumers to re-evaluate their spending
Today TiVo, a wholly owned subsidiary of entertainment
technology company Xperi Inc. (NYSE: XPER), found in its Q4 2023
Video Trends Report that consumers are reevaluating how much they
are spending on entertainment and the ways they enjoy it. With
inflation top of mind for many, consumers are becoming more
intentional about where they spend their dollars – especially as
the number of video services options increases and content
discovery continues to remain an issue. In 2023, the overall
monthly spend on video services dropped by around $13, with users
utilizing 4.0 non-paid services – doubling from 2.4 in 2021 –
indicating ad-tolerance is at an all-time high (62.8%). The shift
in reduced spending signals the entertainment industry’s emergence
from a period of growth characterized by changes in TV viewing
habits to a new period of stabilization.
In addition to the increase in ad-supported video on demand
(AVOD) and free ad-supported streaming TV (FAST) consumption, 20.0%
of respondents shared that they feel they have too many services
and 62.5% admitted to reducing their entertainment spend in light
of recent economic inflation. In response to the industry shift
from a growth to a profit mindset, and the change in consumer
viewing behavior, video service providers started developing “hit”
original series to draw in new subscribers and retain current
customers. Even with these efforts, the gap between users adding
and canceling subscription video on demand (SVOD) services has
decreased by 4.4 percentage points as consumers are now canceling
services almost as often as they are adding new ones. Consumers are
showing they are not afraid to leave a service if they can’t
justify the cost – making cost the leading reason for SVOD
cancellations (21.3%). On the other hand, Pay TV churn risk
declines as 63.7% of respondents are cord-revivers, resubscribing
to Pay TV in the last 6 months, with 33.8% reporting that they
couldn’t get all the entertainment they were looking for without
it.
“The post-covid U.S. streaming market is maturing rapidly and
we’re seeing OTT service providers raising subscription fees to
test the limits of consumer entertainment budgets. This trend
pushes consumers to balance their media diets (and pocketbooks)
with FAST/AVOD services resulting in more churn, lower spend and
increased use of non-paid services,” said Scott Maddux, VP of
global content strategy and business at Xperi. “In the end this is
a win-win, as major media companies are monetizing at both ends of
the spectrum (subscription AND ad-supported) and consumers have
more options.”
As consumers continue to proceed with caution on their
entertainment journeys, video service providers will continue to
work to capture the attention of viewers and keep their retention
rates climbing. With the entertainment industry shifting to focus
more on profit over growth, 2024 will be a year of change as video
service providers step into the future of what it means to watch
video.
Additional TiVo Video Trend Report Highlights
- Let’s Get Personal: When it comes to content
recommendations, personalized recommendations from streaming
services still fall short of word of mouth and organic interactions
in daily life as 45.9% of respondents go to 2 or 3 streaming apps
before settling on something to watch.
- TVOD Is Sticking Around: While movie theaters are making
a well-deserved comeback, consumers are still interested in using
transactional video on demand (TVOD) services to enjoy new releases
from home, with 52.3% of respondents saying they used TVOD services
in 2023 – an increase from the year prior.
- You Can Watch Where?: With consumers watching an average
of 4.7 hours per day, many are splitting their time watching
content on their phones (60.3%), TVs (78.2%), and even in their
vehicles (38.0%). In addition to traditional entertainment like TV
shows and movies, social video is rising in popularity climbing
from 14.7% in Q4 2022 to 17.1% in Q4 2023.
- Your Phone and TV are a Match Made in Heaven: QR codes
remain the most commonly used interactive ad method, as well as the
one most commonly recognized by respondents (40.2%). Gen Z is most
likely to tap an interactive commercial on a tablet or phone
(40.7%) while Millennials are the most likely to utilize QR codes
in a TV show or commercial (35.9%).
Find more information from the latest Q4 2023 Video Trends
Report here.
TiVo is also an expert in video trends and TV viewership data.
TiVo TV Viewership Data includes second-by-second data captured
from set-top-boxes within households across all 210 DMAs in the
U.S. The data reflects both live and time-shifted viewership
information which is the cornerstone of TiVo’s expertise in TV data
processing. Find more information about TiVo’s Viewership Data
here.
Methodology
Since 2012, TiVo has surveyed consumers to uncover key trends
relevant to TV providers, digital publishers, advertisers, and
consumer electronics manufacturers. The latest TiVo Video Trends
Report surveyed 4,436 adults 18 and older living in the U.S. and
Canada during the fourth quarter of 2023 (3,448 U.S., 988 Canada).
In addition to identifying and analyzing key trends in viewing
habits, the TiVo Video Trends Report provides insight to consumer
opinions regarding Subscription Video on Demand (SVOD),
Transactional Video on Demand (TVOD) and Advertising-Based Video on
Demand (AVOD) providers, emerging technologies, connected devices,
over-the-top (OTT) apps and content discovery features, including
personalized recommendations and search.
About TiVo
TiVo brings entertainment together, making it easy to find,
watch and enjoy. We serve up the best movies, shows and videos from
across live TV, on-demand, streaming services and countless apps,
helping people to watch on their terms. For studios, networks and
advertisers, TiVo targets a passionate group of watchers to
increase viewership and engagement across all screens. TiVo is a
wholly owned subsidiary of Xperi Inc. Go to tivo.com and enjoy
watching.
About Xperi Inc.
Xperi invents, develops, and delivers technologies that enable
extraordinary experiences. Xperi technologies, delivered via its
brands (DTS®, HD Radio™, TiVo®), and by its startup, Perceive, are
integrated into billions of consumer devices and media platforms
worldwide, powering smart devices, connected cars and entertainment
experiences, including IMAX® Enhanced, a certification and
licensing program operated by IMAX Corporation and DTS, Inc. Xperi
has created a unified ecosystem that reaches highly engaged
consumers, driving increased value for partners, customers and
consumers.
©2024 Xperi Inc. All Rights Reserved. Xperi, TiVo, DTS, HD
Radio, DTS Play-Fi, Perceive and their respective logos are
trademark(s) or registered trademark(s) of Xperi Inc. or its
subsidiaries in the United States and other countries. IMAX is a
registered trademark of IMAX Corporation. All other trademarks and
content are the property of their respective owners.
XPER – P
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version on businesswire.com: https://www.businesswire.com/news/home/20240402035535/en/
Xperi Media: Allyse Sanchez, Xperi
Allyse.sanchez@xperi.com
Xperi (NYSE:XPER)
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