Study: Streaming Devices Set to Dominate Viewing Preferences

LAS VEGAS: Streaming devices—laptops, tablets and smartphones—are poised to dominate Millennial viewing preferences, as just 55 percent use TVs as their primary entertainment-consumption platform, according to a joint research study from NATPE and the Consumer Electronics Association (CEA).

The study—commissioned by CEA and NATPE and conducted by E-Poll Market Research, found that while many viewers of streaming programs say they are watching more TV programs overall, there was a decline in the amount of time spent watching live TV programs during their scheduled air time. This is particularly true of the younger, Millennial demographic.

The Millennial demographic—age 13 to 34—is comfortable using many different sources of TV program content, making them significantly more likely to consume full-length TV programs from a streaming source (84 percent streamed in the past six months) than live TV programming at its original air time (54 percent), or recorded content from a DVR (33 percent). Millennials value their ability to stream content above cable or broadcast channels. The ability to choose what they want to watch when they want to watch it is of high value to all three generational groupings, but notably among Millennials. In the study, 51 percent consider subscription to Netflix “very valuable,” compared to 42 percent for broadcast channels and 36 percent for cable subscriptions.

Gen Xers were found to be the heaviest users of their cable/satellite/telco time-shifting offerings, including VOD and DVR. Among those in this age group who have access to VOD, 76 percent use their VOD service once a week or more often, similar to SVOD usage. The study found DVRs are primarily used to avoid commercials, while VOD is used for convenience.

The study found increased multi-screen viewing of TV programming is a central factor in reaching younger target audiences. The TV set is still the most commonly used device for watching TV programs. However, among the Millennial group there are some differences in their use and preference for multiple screens. About half of Millennials say they watch TV programming on a laptop, and 19 percent say it’s their preferred TV viewing screen. Another 28 percent watch TV on a tablet and 22 percent on a smartphone. Portability and the ability to watch anywhere is a key benefit in their use of multiple screens, as they have a greater comfort level with smaller screen sizes compared to older generations. Nine in 10 viewers say they watch TV programming on a television set, but Millennials are significantly less likely to do so (85 percent). Only 55 percent of Millennials selected a TV set as the preferred screen for viewing television content.

“Our study confirms that the paradigm for TV content discovery has changed dramatically with increased availability and use of TV content streaming options,” said NATPE's president and CEO, Rod Perth. “With more than seven in 10 viewers in broadband households having streamed full-length TV programs in the past six months, there are opportunities for networks and content producers to reach and build audiences.”
 
“While the vast majority of consumers continue to watch television programming on their TV, many consumers, particularly Millennials, increasingly are turning to a variety of devices to view their TV content,” added CEA's president and CEO, Gary Shapiro. “This has profound implications for the way CE manufacturers market their products as they try to reach diverse markets.”