A recent study from Experian Marketing Services shows that 48 percent of all U.S. adults and 7 in 10 young adults watch streaming or downloaded video during a typical week and half of all adults typically stream video during a typical week.. An estimated 7.6 million U.S. homes today are considered cord-cutters, up from 5.1 million homes in 2010, a relative increase of 44 percent. Users of Netflix and Hulu are the most likely to be cord-cutters.
“While we are seeing the way we view video drastically changing, television is likely to remain the primary device for consumer video; we just are witnessing the transition of the definition of television,” said John Fetto, senior analyst, marketing and research, Experian Marketing Services. “A third of Americans live in households with Internet-connected TVs, giving them the option to stream or download video to the television either directly or with devices such as Kindle Fire TV, Roku, Apple TV and Google Chromecast.”
Other findings from the analysis include:
• Video viewing on a smartphone jumps after the work day ends, with the most viewing occurring between 8 p.m. and 9 p.m.
• While smartphone video viewing generally is lower during the day, there is clear evidence of a video “lunch” and a late-afternoon video “snack” break when smartphone video viewing spikes, especially among young adults
• The top three video properties across desktops and smartphones are: YouTube, Netflix and CNN
• Viewers of online video generally are more receptive to advertising, though only 27 percent of adults who watch video on a smartphone and 31 percent of those who view video on a tablet say that they find video ads on these devices useful.
“While the growing trend in cord-cutting is understandably disturbing to cable and satellite companies and disruptive to the television advertising revenue model overall, the growth in online viewing creates opportunities for marketers,” said Fetto. “That’s because online video viewers can be targeted more easily and served up advertising that is more relevant, responsive and measurable. Marketers also can be more confident that their online ad actually was seen given that viewers typically are unable to skip ads.”
If cord cutters continue their rate of growth we will see about a additional 1 million new cord cutters each year. A solid growth market that should attract new services and business.
You can download the full report here: http://www.experian.com/marketing-services/cross-device-video-analysis.html?WT.srch=PR_EMS_CrossDeviceVideo_20140415_pressrelease