SAN JOSE, Calif.--(BUSINESS WIRE)--Research released today from TiVo, a wholly owned subsidiary of entertainment technology company Xperi Inc. (NYSE: XPER), finds that the average number of video services used by consumers has surpassed double-digits for the first time, since TiVo started tracking this metric in the Video Trends Report in 2012, up to an average of 11.6 video services from 8.9 a year ago and 9.9 in Q2 2022. According to the TiVo Video Trends Report this growth is occurring despite subscription video on demand (SVOD) usage dropping; 26.6% of respondents dropped an SVOD service over the last 6 months, an increase of over 8.0% year over year. The video services growth is soaring due to an increasing usage of ad-supported video on demand (AVOD) and free ad-supported streaming TV (FAST).
The current economic climate and concerns over inflation are impacting consumer spend, forcing people to reconsider the number of services they pay for each month and opt-in to free and ad-supported choices. According to the report, adoption of totally free video services, including AVOD and FAST, has grown by almost 70.0% year over year – reflecting that these services continue to capture a greater share of the market. 64.0% of consumers now utilize at least one AVOD or FAST service, driven largely by millennial audiences, up from 60.0% year over year. The number of choices continues to benefit consumers, but it has led to content discovery becoming even more complex and varied. People still mostly rely on commercials and word of mouth to inform them of other TV shows and movies they’d like.
“We’re at an inflection point in the digital entertainment industry as consumers seek to take advantage of the flood of content choices and service types available but now wrestle with the paradox of choice,” said Scott Maddux, VP of global content strategy and business at Xperi. “Discovery shouldn’t be a chore, and it is imperative that entertainment platforms and video technology providers prioritize simplicity for consumers in order to make discovery and viewing experiences as enjoyable as possible.”
Additional TiVo Video Trend Report Highlights
- Bingeworthy content: More than half of respondents (53.0%) prefer when the whole season of a TV show is available at once, compared to only 24.7% who prefer episodes to be released one per week. During Q4 there was a strong difference among men and women in consuming content, with women reporting a strong preference for the opportunity to binge a whole season (61.0%), whereas men report a stronger preference for the weekly release schedule (60.0%).
- Generation gap: When examining the increase of video services, there are some glaring differences among service consumption when it comes to age groups. Millennial respondents consumed significantly more than any other age group with an average of 16.3 sources compared to Gen Z with 12.7 sources and Gen X with 12.2 sources.
- Eye on spending: In recent months, respondents appear to be evaluating and adjusting their entertainment spending more often, with around 18.0% saying they currently do so every month or more compared to only 13.0% a year ago.
- Entertainment at home: While the recent pattern of economic inflation has caused 30.0% of respondents to reduce their overall entertainment spending, almost three-quarters of respondents (74.0%) say they’re slightly or much more likely to look for entertainment at home than going out. To support this at-home entertainment, these respondents are investing in their home set-up with one-third purchasing a new TV in the last six months.
Find more information from the latest Video Trends Report here.
TiVo is an expert in video trends and TV viewership data. TiVo TV Viewership Data includes second-by-second level data captured from set-top-boxes within households across all 210 DMAs in the U.S. The data reflects both live or time-shifted viewership information which is the cornerstone of TiVo’s expertise in TV data processing.
Since 2012, TiVo has surveyed consumers to uncover key trends relevant to TV providers, digital publishers, advertisers and consumer electronics manufacturers. The latest TiVo Video Trends Report surveyed 4,493 adults 18 and older living in the U.S. and Canada during the fourth quarter of 2022 (3,500 US, 993 Canada). In addition to identifying and analyzing key trends in viewing habits, the TiVo Video Trends Report provides insight to consumer opinions regarding Subscription Video on Demand (SVOD), Transactional Video on Demand (TVOD) and Advertising-Based Video on Demand (AVOD) providers, emerging technologies, connected devices, over-the-top (OTT) apps and content discovery features, including personalized recommendations and search.
TiVo brings entertainment together, making it easy to find, watch and enjoy. We serve up the best movies, shows and videos from across live TV, on-demand, streaming services and countless apps, helping people to watch on their terms. For studios, networks and advertisers, TiVo targets a passionate group of watchers to increase viewership and engagement across all screens. TiVo is a wholly-owned subsidiary of Xperi Inc. Go to tivo.com and enjoy watching.
About Xperi Inc.
Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (DTS®, HD Radio™, TiVo®), and by its startup, Perceive, and IMAX Enhanced, an IMAX and DTS partnership, have been integrated into billions of consumer devices and media platforms worldwide, powering smart devices, connected cars and entertainment experiences. Xperi has created a unified ecosystem that reaches highly engaged consumers driving increased value for partners, customers and consumers.
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