Streaming Is Going Mainstream: The Upward Arc of Online Video, Driven By Consumers

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Not surprisingly, consumers don’t like to pay. Free/ad-supported sites such as TV network sites and Hulu each pull in more than 40 percent of viewers. Hulu Plus, a for-fee site, draws only 9 percent. However, our research indicated that this doesn’t mean consumers won’t pay. Understanding consumers’ consumption preferences can unlock much opportunity with streaming video. Key areas on which to focus are:

Convenience / quality: While consumers continue to perceive streaming video as lower in quality than other delivery methods, convenience—along with content—is king.

Device / integrated experience: More consumers have increased their consumption of Internet video on the tablet in the last two years than on any other video-capable device. But Internet video viewing still occurs most frequently in the home. Consumers who favor the integrated experience—merging television and the Internet via a set-top-box—spend the most time watching web video. Regardless, consumers clearly expect a seamless multiscreen experience, with mobility being a key factor. The highest percentage of consumers believe they will increase their online video viewing in the next two years on laptops, tablets, and smartphones.

Content: What do they like to watch on all those screens? TV shows are a clear favorite. Seventy-four percent of Internet video viewers watch their favorite TV shows online at least weekly, and 42 percent watch every day. That exceeds movies (52 percent weekly and 12 percent daily) and is far ahead of music videos, sports, and other events. Whatever the preference, a broad content library is a key incentive for consumers.

Francisco George‘s insight:

Por fin parece que compañias tan importantes como CISCO empiezan a entender el Usuario: "A los Consumidores obviamente nos les gusta pagar,…, nuestro estudio indica que esto no significa que NO pagarian"

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