Online Subscription Video Services Driving Connected TV Activities: Futuresource Consulting

Online Subscription Video Services Driving Connected TV Activities: Futuresource Consulting

LONDON, January 29, 2015 /PRNewswire/ --



Futuresource Consulting's latest wave of Living with Digital consumer research
highlights the continued shift in entertainment behaviour amongst respondents. One key
trend is the emergence of TV as an increasingly connected device, either directly on the
connected TV or through ancillary devices such as digital media adaptors (DMA) or
connected set-top-boxes, both of which have emerged as very important devices.



"Connected TV activities and DMA uptake is increasingly driven by subscription video
on demand (SVoD) services, which is why video viewing through these devices is more
apparent in the UK and USA," says David Sidebottom, Senior Analyst at Futuresource
Consulting. Connectivity rates for connected TVs have risen to 79% of connected TV owners,
with 63% accessing a service at least once a week.



The Connected Device



"Viewing any type of video is now the most popular entertainment activity on tablets
at 57% of tablet owners across all countries, overtaking playing games. 24% of tablet
owners now watch paid-for video, which is the highest in the USA at 34%," says Sidebottom.



Digital Media Adaptors (DMA) have seen a big jump in ownership levels in this series
of research and is finally making inroads outside of the USA. Ownership levels across all
countries doubled to 10% of total respondents, with notable growth in the UK and Germany.
Households with kids and OTT service users are significant drivers of uptake, US Netflix
subscribers are four times more likely to own a DMA than non-Netflix subscribers. Multiple
ownership is also evident, with around 40% of DMA households having more than one DMA.



"Cord-shaving (Removing Pay-TV packages rather than cancelling) movie packages is also
increasingly evident, with 17% of US subscribers dropping a movie service compared to 13%
in the previous wave, with 19-25 year olds and households with kids much more likely to do
this," says Sidebottom. "Of these cord-shavers, 21% say they are doing so to use online
subscription services instead, up from 13% in the previous wave."



Music Listening Dominated by Streaming Services



Music streaming is well and truly mass market and the most popular form of music
consumption in all countries with 29% of the total base listening to free music streaming
services and 42% Internet radio. The US leads the way with 50% of respondents listening to
any type of streaming music service compared with just 21% in Germany. However, only 5% of
the total base pay for a music streaming subscription service.



The information in the above press release is taken from the latest report in the
Living with Digital series from Futuresource Consulting, which continues to focus on
device ownership, usage and consumers' digital entertainment behaviour, with emphasis on
content usage and consumption.



Notes



Futuresource Consulting is a specialist research and knowledge-based consulting
company, providing organisations with insight into digital imaging, consumer electronics,
education technology, entertainment media, broadcast, storage media and IT. With a
heritage stretching back to the 1980s, the company delivers in-depth analysis and
forecasts on a global scale, advising on strategic positioning, market trends, competitive
forces and technological developments, ensuring clients have access to the information
that will produce the best possible results. http://www.futuresource-consulting.com



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Futuresource Media Contact



For industry comment, forecasting and trends contact James Edwards on:




Email: james.edwards@futuresource-hq.com
Web:http://www.futuresource-consulting.com


Futuresource Consulting

CONTACT: Direct Dial: +44-1582-500131


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