With the rise in SVOD (subscription-video-on-demand) streaming services e.g. Netflix, Amazon Prime, and Hulu, the internet has become increasingly important in the way that consumers now watch television.
The rise of Online TV
Online TV and video services are forecast to generate $42 billion in global revenues by 2020. This will be more than double the $19 billion in revenues that was generated in 2014.
Traditional or Linear TV by Comparison
Linear TV still remains strong, but is linked to age. 82% of 60 to 69 years old people say that they watch Linear TV on daily basis, while only 60% of millennials(those aged 16 to 34) do so. 1 in 4 countries completely cut or pared back their traditional linear TV services in 2015. 47% did so far cost-related reasons with 33% not believing that they were watching enough TV to justify the cost. One half of consumers that watch Traditional Linear TV can’t find anything to watch on a daily basis. This is even higher for those aged between 25 to 34 years of age at 62%.
The Cord Cutting Phenomenon and SVOD Leaders
Every year, more viewers are ditching their expensive paid TV subscriptions (cable) and opting instead for subscription-video-on-demand (SVOD) services. This is growing trend called ‘Cord Cutting’. SVOD services allow viewers to stream the programming that they want from anywhere they are in the world, over the internet.
Online TV and Video Content on Mobile Devices
TV and Video content is increasingly being accessed via smartphones. There has been a 71% increase in the number of consumers who watch video on their smartphones since 2012. 1 in 5 people watch longer SVOD content on their smartphones. The average time spent watching TV and video on mobile devices, increased by 3 hours a week between 2012 and 2015.
Even though Wi-Fi caters for significant part of TV and video data traffic, in some markets mobile data has taken a significant part of the viewing consumption. For example, US based 4G users spend 2.5 times the amount of data on their TV and video viewing compared to 3G users. It is 3 times as much in UK.