CAMBRIDGE, Mass.--(BUSINESS WIRE)--Despite predictions that live streaming television was going to be one of the hottest features in 2017, interest in this service has fallen flat. StreamOn™, a new Cogent Reports™ study by Market Strategies International, has found that only 11% of all streamers pay for live streaming television.
Nearly a dozen new name-brands entered the video streaming market last year, and virtually all of them offer and highlight live video streaming. With the exception of sports and news, our research shows that viewing live content is not in high demand as it is currently offered.
“TV providers are failing to recognize that the habits and needs of the viewer have dramatically changed, and the old rules of television no longer apply,” said Greg Mishkin, vice president of research and consulting at Market Strategies. “TV providers must evaluate and revise the business model to fit the needs of the consumer, because if they don’t they are setting themselves up to fail.”
This customer experience research shows that nearly three-quarters (73%) of the population use streaming services and nearly one-third (29%) of those who stream have either canceled or downgraded their traditional TV services. This signals a dramatic change in how television is sold. The most successful streaming companies are the ones that have gone outside the components of the traditional pay TV format: broadcast channels, scheduled live programming, and programming guides. Netflix is currently the leader in the video streaming industry and has set the bar for other streaming providers.
“While Netflix has the highest use rate and share of wallet by a long shot and is the provider to beat—there is not a clear winner yet. None of the current providers has cracked the code on what consumers want,” continued Mishkin. “However, the research clearly shows that the strength of the leaders is due to their ability to break free from the old rules of TV.”
About the Report
StreamOn is a combined qualitative research and quantitative research study. For the quantitative portion, Market Strategies interviewed a total national sample of 3,260 consumers aged 18 and older from August 7 to August 25, 2017. Respondents were recruited from the Full Circle opt-in online panel of US adults and interviewed online. Of these, 1,242 met the final screening criterion of having used any paid streaming video service in the past. Due to its opt-in nature, this online panel (like most others) does not yield a random probability sample of the target population. As such, it is not possible to compute a margin of error or to statistically quantify the accuracy of projections. Market Strategies will supply the exact wording of any survey question upon request. For the qualitative portion, 40 individuals participated in online moderated discussion boards from September 5 to September 20, 2017.
About Market Strategies International
Market Strategies International is the research and consulting partner that helps the world’s most successful organizations thrive. We have deep expertise in consumer & retail, energy, financial services, health, technology and telecommunications. We blend primary research with data from our syndicated, benchmarking and self-funded studies to provide clients with exceptional research insight that helps solve their challenges. Our research specialties include brand, communications, CX, product development and segmentation. Our syndicated products, known as Cogent Reports, help clients understand the market environment, explore industry trends and monitor their brand within the competitive landscape. Founded in 1989, Market Strategies is one of the largest market research firms in the world. Read Market Strategies’ blog at FreshMR, and follow us on Facebook, Twitter and LinkedIn.