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New TiVo Survey Reveals “Show-Dumping” is the Latest Challenge as Consumers Navigate Content Choices

Company Release - 9/9/2016 3:05 AM ET

Audiences are disengaging from even popular programming, with more than 1 in 3 viewers reporting they have given up on shows because they became too difficult or costly to watch

AMSTERDAM & SAN CARLOS, Calif.--(BUSINESS WIRE)-- TiVo (NASDAQ: TIVO), the global leader in entertainment technology and audience insights, today released findings from a sponsored survey of pay TV and over-the-top (OTT) service subscribers in the U.S., Europe and Asia. The global study is a follow-up to Rovi’s 2015 consumer survey, delving deeper into how viewers engage with content and explore the services and devices that make up their entertainment lifestyle.

Above all, this year’s survey revealed that viewers continue to feel the shockwaves of an industry that is undergoing a significant transition. Ensuring predictable ongoing engagement of audiences, once the hallmark of a successful television series, may be becoming much more challenging.

The survey revealed that while consumers continue to consume significant hours of entertainment content daily, their viewership is becoming potentially more transient, with many viewers “show dumping”—giving up on shows they love because it became too difficult and/or costly to access them.

  • 37 percent of global viewers have stopped watching a show they previously enjoyed because it became too difficult to access the content
  • Shows most cited as ones which respondents had stopped watching are ones that generally require a premium pay-TV package, are only available through paid OTT and/or are unavailable on OTT services that aggregate content
  • On average, respondents spend 4 hours each day watching or streaming video content and an additional 19 minutes per day searching for something to watch, with the U.S. average eclipsing the global average with more than 5 and half hours of viewing time per day

Cord shaving continues to be more predominant than cord cutting, with more consumers considering downgrading pay-TV packages as they are supplementing their services with subscription OTT and streaming media devices.

  • On average, 11 percent of all global respondents say they are extremely likely to downgrade their service instead of canceling, while 8 percent say they are extremely likely to cancel their pay-TV service in the next 6 months
  • Not surprisingly, the results in the U.S. were significantly higher than the global average. A staggering 21 percent stated they are extremely likely to cord shave and downgrade their pay-TV service, while only 13 percent are strongly considering cutting the cord all together.
  • Multiple points of access for OTT is now the norm with 58 percent of respondents reporting they already pay for more than one subscription streaming video service and 45 percent reporting that they have more than one streaming media device in their home

While Netflix is one of the most popular SVOD services across multiple regions, the race for leadership in the streaming media device space is not yet settled.

  • Of the respondents who pay for streaming services, 81 percent in the U.S. report having Netflix, with another 69 percent in the UK, 64 percent in France and 38 percent in Germany
  • Amazon Prime Video is also faring well globally, with 50 percent of respondents in the U.S. subscribed, as well as 49 percent in the UK, 61 percent in Germany and 28 percent in Japan
  • Reported ownership for media streaming devices, such as Roku, Amazon Fire, Google Chromecast and Apple TV, mostly fall in a tight band with similar results of 20-30 percent for each device brand in available regions
  • Roku emerged as the device of choice for U.S. cord cutters and cord nevers, with remarkably higher reported ownership of 38 percent versus less than 20 percent reported for each of the other streaming media device brands with the same audience

Overwhelmingly, consumers feel there is much room for improvement when it comes to search and discovery. Millennials, in particular, showing the strongest desire for better discovery solutions. Since they are the generation consuming the most content across the most platforms, this implies that Millennials clearly translate better discovery into a value proposition which attracts them to the video services they use.

  • More than 47 percent of all respondents agree that for the amount they pay for video service(s), it should be easier to find what they want to watch
  • 40 percent of viewers turn off the TV and/or device and disengage all together when they can’t find something to watch
  • In the U.S., 73 percent of Millennials have streaming devices at home and 91 percent are SVOD subscribers, in contrast to 29 percent and 50 percent of Boomers
  • U.S. Millennials also spend more than 6 hours per day watching content, with another 32 minutes searching or likely browsing for what to watch
  • 53 percent of Millennials say they often expect recommendations on what else to watch, in sharp contrast to the 14 percent of Boomers and 36 percent of Gen Xers

Indications from the research are that better search and recommendations can drive increased viewer engagement and viewing time.

  • Consumers most satisfied with their search function watch almost 7 hours of content per day, 21 percent more than the U.S. reported average of 5.6 hours
  • Consumers most satisfied with their recommendation function watch 7.5 hours of content per day, a massive 34 percent more than the U.S. reported average of 5.6 hours

“Shifts in viewer engagement, like show-dumping, impact the whole value chain, further challenging business models in a fragmented marketplace with many different viewing choices,” said Paul Stathacopoulos, vice president of strategy and strategic research, TiVo. “Unified discovery and seamless access to content removes some of these barriers for the consumer, improving engagement and resulting in real business benefits including higher content consumption, increased subscriber retention and improved service value, especially for the Millennial generation.”

The research findings were the result of an online survey of 5,500 pay-TV and OTT subscribers across seven countries worldwide with 2,500 interviews completed in the U.S., and 500 interviews completed each in the U.K., France, Germany, China, Japan, and India. TiVo will showcase its entertainment technology and audience insights solutions during IBC this week in Hall 14, Stand G01 and Hall 5, Stand A31.

Download the survey graphics here.

About TiVo

TiVo (NASDAQ: TIVO) is the global leader in entertainment technology and audience insights. From the interactive program guide to the DVR, TiVo delivers innovative products and licensable technologies that revolutionize how people find content across a changing media landscape. TiVo enables the world’s leading media and entertainment providers to deliver the ultimate entertainment experience. Explore the next generation of entertainment at tivo.com, forward.tivo.com or follow us on Twitter @tivo or @tivoforbusiness.

Forward-looking Statement

All statements contained herein that are not statements of historical fact, including statements that use the words “will” or “is expected to,” or similar words that describe TiVo Corporation’s or its management’s future plans, objectives or goals, are “forward-looking statements” and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of TiVo Corporation to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. Such factors are further addressed in Rovi Corporation’s most recent report on Form 10-Q for the period ended June 30, 2016, TiVo Inc.’s most recent report on Form 10-Q for the period ended July 31, 2016, and such other documents as are filed with the Securities and Exchange Commission from time to time (available at www.sec.gov). TiVo Corporation assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.

Finn Partners
Ricca Silverio, +1-949-439-7869
tivo@finnpartners.com

Source: TiVo Corporation