Consumer behavior is showing a shift toward streaming, and the momentum is building. A new report from Grabyo shows that 74% of consumers worldwide who are paying for video will get their content exclusively through streaming within the next five years.
In the Value of Video Report 2020, 13,000 consumers were surveyed in the US, UK, France, Germany, Italy, Spain, Brazil, Argentina, Thailand, Japan, and Australia.
The report shows a huge increase of 55% in online streaming just in the past year in the 11 markets included in the study. When asked why they chose to cut the cord, 26% listed price as their number one reason. Flexibility was another leading factor, with nearly one in five respondents saying they prefer the flexibility that online services offer, in comparison to traditional TV with annual contracts.
With many streaming services making their products available on mobile devices (not to mention mobile-only services like Quibi) it’s becoming easier than ever for consumers to cut the cord and still enjoy their favorite content anywhere, anytime. The report shows that smartphones are the most popular device for streaming with 65% saying they watch video on a smartphone regularly. 58% said they watch video on a Smart TV regularly, and 30% said they use a streaming device to stream content regularly.
While there have been many issues with sports networks and streaming services negotiating rights to local sports recently, the study shows that sports fans are one group likely to make the switch to streaming. 54% of global sports fans with pay TV subscriptions plan to cut the cord within 5 years, the results showed.
“Broadcasters, rights holders and publishers need to cater to an audience that is moving away from traditional TV,” said Gareth Capon, Grabyo’s CEO. “Flexibility, access and price are important to consumers, which means delivering a multiplatform video strategy that reflects these needs. The transition to cloud services will support this shift, but these changes need to accelerate.”
Download the full report from Grabyo HERE.
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