Streaming Brings Choice, Convenience to Audio and Video

amp8220Todayamp8217s streaming landscape is as dynamic as the consumers themselvesamp8221amp160saysamp160Peter Katsingris Nielsenamp8217s senior vice president audience insights amp8220There is something for everyone from adsupported models to subscriptionbased services that are proliferating and allowing viewers and listeners a chance to lean into the content they want on their own time and in their own wayamp8221For evidence of streamingamp8217s rise look no further thanamp160Nielsenamp8217samp160latestamp160Total Audience Report which notes that 20 percent of all TV usage is streaming content Streaming users have access to an almost unlimited array of choices In 2019 US consumers had 646152 unique program titles to choose from across linear and streaming services amp8212 up 10 percent from 2018 Nielsen reportedIn the video market consumers can choose from dozens of subscription and free adsupported streaming providers with new services launching almost weekly Most recentlyamp160Appleamp160Disney andamp160NBCUniversalamp160have unveiled their streaming platforms joining established players such as Amazon Primeamp160Hulu and Netflix smaller independent players also dot the market To meet growing demand new services are still forthcoming including one fromamp160DiscoveryAt the same time Amazon Apple and Netflix are spending billions on original content signing exclusive deals with producers who cut their teeth on linear TV and bigname movie stars On the service side Hulu Roku and YouTube offer lowcost plans to access live and ondemand programmingFor consumers streaming services come at considerably lower costs than cable and satellite service While the number of amp8220cordcuttersamp8221 continues to grow streaming services are adding users with some customers willing to shell out for paid digital video services and even multiple SVOD plansAccording to Nielsen 90 percent of streaming video users said they currently subscribe to an SVOD service and nearly onethird subscribe to three or more paid services Streaming scores particularly well with younger consumers with 96 percent of adults ages 18 to 34 subscribing to an SVOD service and nearly half of those customers paying for three or more plansIn Nielsenamp8217s survey consumers said that access to content is one of the main drivers of their streaming usage That includes old programming they canamp8217t access on linear TV as well as new shows and rich libraries of content Theyamp8217ll even sign up just to gain access to a serviceamp8217s exclusive buzzedabout showamp160About onethird said theyamp8217d sign up for more services to access additional programmingamp8220Whether it be new original programming or offtheshelf shows that are new to younger consumers today there is an opportunity to attract them to your serviceamp8221 Nielsenamp8217samp160Katsingris says amp8220The challenge will be to keep them thereamp8221But will there be a tipping point where consumers feel thereamp8217s just too much content or theyamp8217re paying for too many servicesamp160Nielsen reported that 42 percent of consumers surveyedamp160canceled a paid video service because they werenamp8217t using it enough to justify the cost while 20 percent canceled after they finished a show they signed up to access Andamp16040 percent say they donamp8217t have time to watch more programmingTo keep churn low streaming services need to make sure their customers feel theyamp8217re getting enough for their moneyamp160Among subscribers 93 percent of US streaming users said they will either increase or keep their existing streaming services but theyamp8217re still looking for value When evaluating subscriptionsamp16064 percent of consumers say that overall costs play a factorBrands are embracing streaming to reach its engaged viewers however theyamp8217re experiencing some growing pains A new study by Conviva reported that streaming adsamp160load slowly with users waiting an average of 227 seconds in Q4 2019 up from 114 seconds in the previous quarter As a result users are more likely to exit ads with nearly 50 percent opting out in Q4 2019Ad delivery failures were down compared to Q3 2019 which should produce more successful viewing rates Conviva reported Marketers are shortening their ads amp8212 with the average spot run time coming in atamp160266 seconds in Q4 compared to 38 seconds in Q3amp8220As with any disruptive technology growing pains are inevitableamp8221 says Conviva CEO Bill Demasamp160amp8220The companies that win the streaming wars will be those able to offer viewers a fast clear reliable experience regardless of where in the world they live or what device they useamp8221In theamp160audioamp160industryamp160digital streamingamp160is similarly transformative although there are some differences from videoamp160Radio retains its place as the most used ofamp160allamp160media reaching 92 percent of all Americans but digital audio is quickly gaining ground Sixtyfour percent of Americans said they streamed digital audio on smartphones in Q3 2019 up from 45 percent the prior yearWhile SVOD dominates streaming video audio consumers are drawn more to free adsupported services which Nielsen attributes in part to the legacy of free overtheair radio Digital audio offers listeners more personalization than local radio and some consumers are willing to pay for subscription plans for additional customizationamp160Katsingrisamp160notesamp8220Audio consumers are used to accessing content in a seamless manner and when it comes to paid audio streaming they demand the same ease of use when navigating this ondemand contentamp8221 he saysWith audio and video the adage amp8220content is kingamp8221 still rings true Programming is the biggest driver for subscription video and ondemand audio With that in mindamp160Katsingrisamp8217amp160advice to streaming services guard your flank amp8220Cost ease of use new content or new seasons of current hits will be important to keep in mind for both current and new streaming servicesamp8221Don39t stop now Stay in the know on audience data with more from Nielsen Data InSites and on audiovideo trends with more from Audio InSites and Alli RomanoClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

Streaming Brings Choice, Convenience to Audio and Video

Author

Publish date

Channel

Archived in

Alli Romano

We Are the Outliers - By Jack Myers

More Videos:

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

Streaming Brings Choice, Convenience to Audio and Video

Enjoying This Commentary? There's More to Love

Alli Romano

Stay in the know with more from MediaVillage

We Are the Outliers - By Jack Myers

Cookies