Report: How Consumers Make Choices In A New Era Of Entertainment Options

written by: Richard Kastelein

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More and more mainstream consumers are considering alternatives to linear broadcast according to a recent study released by American research firm Chadwick Martin Bailey (CMB) - essentially confirming what many in the industry are feeling.

The New Age of Television: The Future of Over the Top TV ” surveyed nearly 1,500 U.S. consumers to get a pulse on their TV and video viewing habits and what it means for the future of Over the Top (OTT) content. According to CMB, this research was designed to uncover not just what consumers are doing when it comes to watching TV and movies, but also why and how they’re doing it.

“A profound shift has taken place in the balance between producer and consumer,” the report states, “from the former dictating how content will be packaged and delivered, to the latter insisting on entertainment where, when, and how they want it.”

Key takeaways from the report include:

1. More and more mainstream consumers are considering alternatives:

  • It's not just early adopters. Most people say they've tried alternatives to pay TV.
  • Cord "shavers" may be a bigger issue than cutters. A high number of pay TV subscribers intend to reduce their service in the next year. And the number is higher among pay TV's best customers.


2. Core TV behaviors are changing:

  • More people are watching on mobile devices, even when they're at home and they could watch on TV.
  • People are comfortable with, and most actually prefer aspects of digital media that have limited online viewing in the past (e.g. streaming vs. owning content).

3. The barriers to a larger shift may not be easy to address, but they are addressable:

  • Cost, transmission interruptions, and lack of familiarity are the main things holding people back.

4. The bottom line: Consumers buy solutions, not delivery technology:

  • An IP-based online solution that gives them what they're looking for: cost savings, ease of use, and reliability will significantly disrupt the pay TV status quo.

5. In this survey it is shown that consumers know what they want when it comes to the best TV and movie watching experience:

  • Streaming Beats Owning
  • Streaming content is twice as appealing as downloading or owning content.
  • More Content Beats Newest Content
  • Given the choice, consumers would choose a service with the deepest catalog over one that focuses on new content.
  • Simplicity is Important
  • Consumers want simple solutions that minimize the number of accounts they need to manage.


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