PwC Reveals New Video Consumption Trends

NEW YORK: As pay-TV and OTT competition intensifies, video consumers are eager for customization and control in their subscription services, PwC says in its new study, Videoquake 3.0: The Evolution of TV's Revolution.

The report from PwC U.S.’s entertainment, media and communications practice says that 79 percent of American consumers subscribe to some form of traditional pay TV. Of those subscribers, 23 percent engaged in some form of “cord trimming” in the last year, and 16 percent unsubscribed. PwC notes that 5 percent identified as cord-nevers.

PwC asked cord-cutters what it would take to entice them to re-subscribe to pay TV, and 56 percent identified “being able to customize my package to exactly the channels that I want.” A similar sentiment was reflected by existing pay-TV subs, with 45 percent saying they preferred an “a la carte” package of channels that they could customize themselves. An average pay-TV subscriber has access to 194 channels and only watches 17, PwC says.

“By making investments in the consumer experience and offering packages that resonate structurally—such as skinny bundles and TV Everywhere, which enables content to be integrated and shared across platforms, pay-TV providers are showing that the battle for subscribers is still very much alive,” the report indicates.

Respondents agreed that the amount of content available today is “overwhelming.”

Of those surveyed, 78 percent have at least one streaming service. Netflix has a commanding lead, at 65.1 percent of U.S. TV watchers, followed by Amazon Prime (34.2 percent), Hulu (16.3 percent) and HBO Go (14.9 percent). The report also found that 52 percent of Netflix subscribers also subscribe to cable, and 55 percent also subscribe to at least one other OTT platform. This overlap is higher among Hulu customers; 91 percent also use one other OTT service. At Amazon Prime, 79 percent pay for at least one other OTT platform.

To remain viable, content providers and distributors must rethink their business models, PwC says. This includes repositioning bundles to cater to demands for a la carte services. Platforms must also do a better job of measuring viewing across devices. Content discovery is key, to help viewers find and engage with programming. PwC also says companies must “rethink commercials and the value of eyeballs” as viewing becomes more fragmented on multiple devices.