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Survey: Consumers to Use a Mix of OTT and Pay-TV by 2020

7 Jan, 2015 By: Stephanie Prange



LAS VEGAS — Consumers will be using a mixture of Internet TV and pay-TV services by 2020, according to a global survey of roughly 5,000 adults commissioned by Irdeto and announced at the 2015 International Consumer Electronics Show.

Only 18% of consumers in the United States are expecting to watch most content through pay-TV services compared with 21% of United Kingdom consumers, and 27% of U.S. consumers are expecting to watch most content through Internet TV services such as Netflix or Amazon Prime compared with 11% in the U.K.

Internet TV services are expected to be more popular among younger consumers, with 40% of 18 to 34 year olds in the U.S. expecting to watch most content through these services in 2020, and 18% of 18 to 24 year-olds and 20% of 25 to 34 year-olds in the U.K. For those who expect to watch most content through Internet TV by 2020, 41% in the U.S. and U.K. said it was because the user experience and recommendations were better. Of those who expect to watch more content on pay-TV, 56% in the U.S. and 45% in the U.K. think that user experience is better.

Smart TVs and alternative viewing devices are must-haves globally: 52% of U.S. respondents own or plan to own a smartphone, followed by tablets (36%), game consoles (26%) and smart TVs (17%). Smart TVs are the device that more people plan to buy than any other in the U.K., with 13% saying they plan to buy a smart TV in the next year. This is followed by tablets (13%) and dongles that plug into a TV, such as Google Chromecast (9%). In Asia Pacific, smartphones (63%) and tablets (46%) emerged as the top two devices that consumers own or plan to buy within the next year, while third on the list are smart TVs (34%).

When it comes to viewing content through connected devices, smartphones are the most widespread choice, with 65% of U.K. consumers owning one. This is followed by satellite or cable set-top boxes (56%), tablets (45%) and game consoles (41%).

Binge viewing and the ability to watch content on multiple devices are key for OTT consumers. For those who expect to watch most content through Internet TV by 2020, 39% in the U.S. and 41% in the U.K. said that this is partly because they prefer to be able to watch multiple episodes of a series at once, while 40% in the U.S. and 39% in the U.K. also said that it would allow them to watch more content on multiple devices. Not surprisingly, these two considerations are most popular among younger consumers, with 53% of U.S. 18 to 34 year olds citing more devices and 47% citing multiple episodes as their reasons for choosing Internet TV.

On the pay-TV front, of those consumers who expect to watch more content on pay-TV in 2020, 56% of respondents selected quality and user experience as the most important factor, with only 32% of U.S. respondents citing that this is because there is more content available. Surprisingly, 56% of consumers in the U.K. cited more content availability as the main reason for expecting to watch more content on pay-TV in 2020.

“This survey shows that consumers expect a sophisticated, hybrid and personalized entertainment experience by 2020,” said Richard Scott, SVP of sales and marketing for Irdeto.
 


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