HOW HAVE U.S. VIEWERS SHIFTED CONSUMPTION BEHAVIORS DURING THE PANDEMIC?

Hub Entertainment Research released one of its most recent studies, “Predicting The Pandemic,” which showcases how US consumers’ entertainment behaviors have shifted throughout the Covid-19 pandemic. A second part of the study revealed that the crisis has accelerated online entertainment consumption across the market, a trend that was already experiencing growth before this year. “If there were any doubts that some of the changes we’re seeing in leisure habits are here to stay, those doubts were erased when Warner Bros. announced that its entire slate of 2021 films would be released on HBO Max at the same time as theaters,” said Peter Fondulas, Principal at Hub and Co-author of the study. 

Some of the habits that were noted during the study include consumers’ decision to reconfigure their TV service subscriptions as they spent much of their fall at home. Compared to July, one-third of consumers in November signed up for new TV service, up 6 points from the summer. 25% of consumers canceled a TV subscription, while 40% made at least some change to their TV  subscriptions in November. As consumers seek to limit their consumption costs, AVOD platforms have continued to see a rise, including the new, free version of Peacock. Released to the general public in mid-July, it has quickly become the third-most watched AVOD service, surpassed only by Roku Channel and Tubi.

The market’s four largest streaming services received the highest net increases. Netflix and Disney+ were most likely to see growth during November. Half of the viewers who reported consumption behavior changes included the addition of Netflix, while one third reported a Disney+ subscription. Only single-digits canceled these services. However, consumers were more likely to drop a live TV service rather than add one. Half of TV service changes declined included services like YouTube TV, Hulu+ Live TV, and Sling TV. One-third of consumers canceled a traditional cable, satellite, or telco TV subscription, while fewer than 1 in 5 added one of them. “With providers like Comcast deciding to impose data caps across its entire footprint as of January 1, it’s clear that many companies agree that streaming content is now the new normal,” Fondulas said. 

First-run movie purchases have also surged. One-fourth of all TV consumers in November say they’ve purchased a first-run movie from a streamer. Among those who currently own a Smart TV, 26% say they purchased their Smart TV during the pandemic. 12% of consumers upgrade their internet service to greater speeds to better manage their bandwidth needs.