Video entertainment has evolved. ABI Research evaluates expectations of the TV as a Service (TVaaS) business model, and finds that TVaaS revenues will grow from 10% in 2016 to 35% of video software revenues in 2021.
Source: ABI Research
In December 2016, according to comScore data, more than 49 million homes – 53 percent of U.S. Wi-Fi connected homes – accessed at least one OTT service. Moreover, these households were active in viewing OTT content, doing so an average of 19 separate days during the month, and for 2.2 hours per usage day.
The appetite for on-demand video entertainment is healthy across all age groups, with the average person in the U.S. spending 30 to 50 minutes per day viewing content via OTT multimedia devices or DVR and VOD playback.
Access to movies (50 percent) is the top reason why consumers pay for streaming video services; viewing complete seasons of TV shows (45 percent) is a close second and has increased 6 points in just six months.
Source: Digital Lifescapes
Nielsen conducted an analysis to determine how many U.S. homes own various devices and how data has trended over time. Today, just over 23% of TV homes own a digital streaming device such as an Amazon Fire TV, Apple TV, Google Chromecast or Roku, up from 19% in June 2016.
From the perspective of overall market growth, the pay TV sector hardly seems like the most attractive investment, with many researchers foreseeing slim growth in users or revenues this decade.
Next year will mark a major milestone for media consumption in France. According to eMarketer’s latest forecast of time spent with media, the average adult will spend more time with digital media per day than TV, a first for that country. Also next year, time spent with mobile devices will surpass desktop and laptop time.