Report: Free Streaming Rivals SVOD

PORT WASHINGTON: Free TV streaming is becoming a growing trend with traditional television customers, almost level with SVOD usage, according to The NPD Group, which also finds that Hulu.com is the leader in this segment.

According to NPD’s Free Streaming TV report, 12 percent of U.S. TV watchers say they have streamed shows for free in the last three months; 14 percent say they have watched a show via SVOD.

“Over half of the viewers for streaming TV are between the ages of 18 and 34, so the YouTube generation is evolving from short-form and user-generated content to TV shows and, like YouTube, they can watch where and when they want,” said Russ Crupnick, the senior VP of industry analysis at NPD. “Despite the attention lavished on tablets and phones, an astonishing 83 percent of free TV streaming programs are viewed on a computer.”

The report finds that Hulu accounted for 43 percent of total streams during 2012. After Hulu, the five broadcast network sites—CBS, ABC, FOX, NBC and The CW—accounted for another 30 percent of total streams. Four cable TV sites—ABC Family, Comedy Central, MTV and A&E—round out the top 10 free streaming TV sites.

NPD finds that consumers are generally satisfied with their overall streaming experience. All of the top 10 free streaming sites have strong consumer feedback, with 75 percent or more of each of these site’s users reporting that they intend to return to the service. Most of them also perform well about the availability of current releases, except Fox.com, which streamers rate much lower on this measure because of the fact that the network generally delays availability of its programming. “The consumer response to program availability on Fox, speaks to the often-controversial question of whether the audience detects shows that are windowed,” Crupnick said.

Crupnick added, “from the consumer perspective, it is important to monitor the habits and perceptions of the audience as all of these distribution models evolve, which will help align programming to the target audience and inform whether consumers are responding positively to the experience these options provide.”