VIDEO CONSUMPTION BEHAVIORS CONTINUE TO SHIFT IN THE US

Transunion released survey results conducted to determine how streaming behaviors have held up this year. Nearly three-quarters of the US in November 2020 said they have increased their use of paid streaming services since the onset of the Covid-19 pandemic. 56% said the same in May of earlier this year.“Covid-19 has upended the entertainment landscape and with it, has accelerated the shift to streaming media," Matt Spiegel, Executive Vice President and Head of the marketing solutions and media verticals at TransUnion, said. "To gain market share, platforms are vying for captive audiences, focusing on how their content can stand out in a growing sea of choices."

The survey was conducted the week of 2nd November 2020 and included responses from 2,538 US consumers, ages 18 and over. The results confirmed results from other studies analyzing subscription-based streaming providers, including platforms such as Amazon Prime, Hulu, Netflix, and Apple TV. The platforms have continued to see growing adoption among consumers this year amid the pandemic. Consumers continue to shift towards streaming platforms for the sake of diversity, affordability, and convenience.

The new study also revealed that consumers are spending an average of 3-4 hours a day consuming streaming media, with 55% opting for this form of entertainment in place of a cable TV subscription. Not surprisingly the survey noted that younger generations (Gen Z and Millennials) were most likely to also use streaming services due to affordability concerns with traditional cable or satellite packages, which indicates that chord-cutting could continue.

Overall, 68% of respondents were considering adding more streaming services in 2021 if the service was more cost-effective than cable or satellite television, or if the platform has content the consumer is interested in. The report however does warn that the US may be reaching a saturation point for SVOD services. It notes that 44% of consumers are subscribing to an average of 3-5 SVODs, dropping to 7% for subscriptions to 7-10 services. A total of 58% of US consumers said that they would not add new streaming services in the new year, but 67% said that they also have no plans to cancel any of their existing subscriptions.

The acceleration of media consumption within a connected home, while originally spurred by the COVID-19 pandemic will continue through the near future.“The streaming wars have entered a new phase where it is not only about capturing potential new customers, but there’s also a focus on sustaining and maintaining their existing customer base,” Spiegel said. “While consumers are adjusting to the new realities brought on by the pandemic, there is still a strong appetite for streaming.”