Recently my cousin and his family came for a visit and we encamped his two pre-teen daughters in the living room, with inflatable beds and sleeping bags.
I prepared to give the girls a primer on the TV remote control and a tour of our cable channels but I noticed a decided lack of interest on their part.
“Do you guys want to watch TV?” I asked.
“No,” they replied in unison, not once looking up from their smartphones. Indeed, the TV remained off all weekend.
Emerging trend
What I witnessed in my living room is fairly typical, according to new research from Accenture. In its study of consumer trends, the company found the television set was the only digital product category to see uniform, double-digit usage declines among viewers in most age groups.
Increasingly, consumers are turning off TV and replacing their sets with a combination of laptops, desktops, tablets and smartphones when they want to view video content, what we so quaintly referred to in the past as “watch television.”
Young viewers seem to be abandoning television the fastest. The study found 14- to 17-year-olds are dropping TV at the rate of 33% for movies and television shows and 26% for sporting events.
The decline continues for older demographics until it flattens out for those 55 and older. But even among Baby Boomers, the trend is moving away from TV.
Pendulum shift
”We are seeing a definitive pendulum shift away from traditional TV viewing,” said Gavin Mann, Accenture’s global broadcast industry lead. “TV shows and movies are now a viewing staple on mobile devices of all shapes and sizes, thanks to improved streaming and longer battery life. The second screen viewing experience is where the content creators, broadcasters and programmers will succeed or fail.”
Streaming services like Netflix, Amazon Prime, Hulu and the TV broadcast networks’ own streaming platforms, allow viewers to watch what they want, when they want. Increasingly, they are doing so. In industry jargon it's called “over the top content,” and more is emerging all the time.
Now you don’t have to subscribe to cable TV to get HBO. The company has just launched HBO Now, promising “instant access to all of HBO” on your streaming device on a subscription basis. It's marketing slogan says “all you need is the Internet.”
Previously consumers had to subscribe to cable – and with a significant package at that -- for the ability to add premium channels like HBO.
Room for improvement
While anytime, anywhere viewing is becoming mainstream, consumers are not completely satisfied with the viewing experience so far. For the most part, complaints are about the Internet service delivering the programming.
More than half the people in the survey who said they watch streaming content complained about buffering and other technical issues, as well as advertising placement.
Accenture’s take? Content producers – notably the broadcast networks – are still in a favorable position but will have to improve delivery as well as keep content to the standards consumers expect.
“Understanding consumers and ensuring decision-making is centered on consumer insights will be increasingly key to success,” said Mann. “The future leaders in media and entertainment will be those who listen to the audience and can tailor their content and services to this new reality.”
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