22 Oct 2017
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Streaming inches closer to linear TV in the US

MUMBAI: 75 per cent of people in the US watch any type of streamed video several times a week or more, compared to 77 per cent who watch scheduled broadcast TV several times a week or more.

The study is done by Ericsson, which released its ConsumerLab, annual TV and Media report.

Subscription-based video-on-demand (SVOD) accelerates binge viewing

56 per cent of S-VOD users prefer all TV series episodes to be available at once so that they can watch at their own pace, compared to 45 per cent
of non S-VOD users.

There is also an increased willingness to pay for anywhere access. Since 2012, the number of people that are prepared to pay for accessing TV content
on any device has increased by 25 per cent. Smartphone viewing time has in the same period increased by 15 per cent, despite significant mobile access and business model barriers.

Digital Video Recorders (DVRs) are disassembling linear TV channels

TV channels are increasingly considered a source from which consumers can harvest programmes and movies by using a DVR. This mindset is part of a technology-independent transition towards on-demand viewing.

Consumers want 4K

For 60 per cent of consumers, HD quality is a very important aspect of their optimal TV/video experience, and 4K/Ultra High Definition (UHD) is important to 43 per cent. Increasing video quality expectations are part of an ever evolving consumer-driven viewing experience.

According to the Ericsson report, the time has come to change the structure of TV services in the US. Traditional TV providers are facing challenges. The average Net Promoter Score (NPS) for over-the-top (OTT) on-demand services in the US is 39, much higher than that for traditional TV providers at 12. In the future, consumers will not accept paying for inflexible managed TV packages in order to get access to the content they love.