Where is the future of streaming media? From Overseas digital media trend survey report

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The following is the Where is the future of streaming media? From Overseas digital media trend survey report recommended by recordtrend.com. And this article belongs to the classification: User Research.

Deloitte recently conducted an online survey to see how the covid-19 pandemic has changed media consumption habits. The survey found that there is a trend in media and entertainment (M & E): in order to maximize time and consumption efficiency, consumers constantly subscribe to, try out and cancel streaming media services.

People subscribe to an average of 12 media and entertainment services, and are also looking for more free and subsidized entertainment services, such as streaming video that can be viewed free but with advertising. There are so many entertainment options that the competition to attract and retain customers is fierce.

This report is produced by Deloitte and selected by Tencent Media Research Institute.

Five generations defined in the report

Nowadays, the liquidity of media consumption is increasing day and night

Users are getting faster and faster, especially in paid streaming video, music and game subscriptions. People have more time to watch, listen to and play games, and they keep adding new services to get new content. More and more people are trying out new media and entertainment choices, which have been activated or accelerated by the new crown crisis. During the implementation of the home order, the social content, live broadcast and Premiere of digital services showed a high degree of participation. In difficult times, many people seek solace from the media and entertainment.

At the same time, it is becoming more difficult to retain users, and more and more people are unsubscribing. Free or discounted new product offers, as well as compelling original content, can attract subscribers. However, if the content runs out and the content is not worth the full price, they are likely to cancel the subscription. Due to the emergence of free and advertising supported alternative products, subscription products must show their subscription value, which is particularly important, especially when subscription products are facing increasingly fierce competition from live video services and game videos.

The situation is even more serious for cinemas, stadiums and offline activities that were closed during the crisis. They are facing the challenge of maintaining user engagement and trust, and competing with the cost, comfort, and security of watching TV at home. Not only that, these pressures are likely to grow as consumers have less money at their disposal – 39% of our survey respondents have said that household income has declined since the outbreak of the new coronavirus.

The spread of the virus and how the resulting economic impact will develop is difficult to predict, and we are still not sure how long these effects will last. However, the opportunities and challenges facing media and entertainment companies are becoming increasingly clear, and executives should use the windfall to recover from setbacks and thrive in the next decade.

As people experience more and more content, they become more and more tired

American consumers like digital entertainment. Each home has an average of seven digital devices with screens: smartphones, tablets, smart TVs and laptops. Providers are facing more and more media and entertainment competitive choices, but for now, streaming video services dominate the screen.

Prior to covid-19, U.S. consumers had an average of 12 paid media and entertainment subscriptions (Figure 1). Millennials have an average of 17 subscriptions, 14 for generation Z and 13.5 for generation X. 27% of consumers (42% of them millennials) say they plan to subscribe to more services next year.

Our survey also found that subscription fatigue increased before covid-19. Consumers are entangled in more content, and this sense of fatigue is strongly related to the impulse to reduce subscription services. (Fig. 2)

Among millennials, 40% feel “overwhelmed” by the number of subscriptions they manage, and 43% plan to reduce the number of subscriptions. For generations Z and X, the figure hovers around 30%, indicating that many consumers have registered more services than they can afford or can afford. Therefore, for suppliers, user churn may become an increasingly serious problem.

Since the beginning of the covid-19 pandemic, the consumers we surveyed have been increasing and cancelling their subscriptions (Figure 3). For example, 20% of U.S. consumers changed their streaming music subscription service; 12% added at least one service; 5% canceled at least one; and 3% added some services and canceled others.

Streaming video subscription: after a great leap forward, has it suffered a setback?

The trend of increasing and canceling streaming video subscription is becoming more and more clear. The increasing trend is at the center. Before covid-19, 27% of U.S. consumers said they planned to add new streaming video services in the coming year. Since the beginning of the covid-19 pandemic, 23% have added at least one new paid streaming video service.

As a result of this subscription leap, 80% of U.S. consumers now subscribe to at least one paid streaming video service (Figure 4), up from 73% in our previous covid19 survey. Moreover, nearly 70% of the baby boomers now pay to subscribe to streaming video, which may be a lagging indicator of the flow of users to streaming video.

Subscribers now subscribe to an average of four paid streaming videos, up from three in the previous covid-19 survey. Not only more consumers have streaming video services, but also more users subscribe to streaming video services than ever before. However, as more and more media providers (including Disney +, Apple TV +, 6 and HBO max) join the competition, the competition is increasing, which puts pressure on content and pricing.

Since the beginning of the covid-19 epidemic, 9% of consumers have added or cancelled at least one new paid streaming video service, which means that as consumers seek subscription value, the churn rate will increase.

In addition, consumers may reduce their subscription after the restrictions brought by covid-19 are lifted. We find that the main reason why consumers have increased streaming video services during the crisis is that they have more time to watch programs and movies. As consumers return to more normal activities, they may reduce their entertainment time.

Preferential pricing establishes a user base, but how long will the policy last?

In order to quickly win subscribers, many streaming video services offer new product discounts and free trials. But thanks to cheap trials and easy cancellations, consumers can unsubscribe after a frenzy and then re subscribe when the next season comes online – essentially opportunistic “renting” services.

This highlights the difficulties that vendors face in user retention and their growing focus on content libraries and original design. When we asked consumers why they subscribed to a particular streaming video service, their response showed that content was still the most important reason to subscribe. Consumers are attracted to streaming video services because it provides content that they can’t get elsewhere, a variety of shows and movies – whether original content or classic shows. (Fig. 5).

In addition, price is also important. Nearly a quarter of consumers believe that free or discounted prices are an important factor in their choice of paid streaming video services. When the product returns to full price, consumers are likely to assess whether the service provides enough high-quality content to decide whether to retain the service.

In fact, streaming video subscribers are canceling more services: surveys prior to covid-19 found that 20% of subscribers cancelled at least one streaming video service in 2019. In the short months since covid-19 began, 17% of subscribers have cancelled a service. When we asked consumers why they wanted to cancel, 36% said the subscription fee was too high. The new crown crisis may aggravate cost pressure. Consumers who lost their income during the covid-19 pandemic were twice as likely to cancel services due to fees than those whose incomes remained unchanged.

In addition to the price factor, users unsubscribe because their trial period is over and / or they have seen everything they want to see. In fact, before the outbreak of the new crown crisis, 38% of consumers in the United States went crazy once a week, watching the show for an average of 4.2 hours each time. Since many products have been discontinued during the crisis, providing rich content to retain users has become a greater pressure on suppliers. If a consumer subscribes and doesn’t have lasting fun, they cancel the subscription and move on to the next option.

Advertising supported streaming media: the battle of business models

In Asia, advertising supported streaming media services dominate. More than a billion people watch free or ad supported streaming video. In the United States, services tend to be premium monthly subscriptions without advertising. But that trend may be changing. According to the survey, 47% of U.S. consumers currently use at least one free ad supported streaming video service. In addition, the survey shows that both before and after the covid-19 pandemic, more and more American consumers want to choose cheaper, ad supported streaming video services (Figure 7).

Our covid-19 survey also found that 35% of consumers do not want advertising and will pay to avoid advertising. For these consumers, the ad free experience is an important reason for them to watch streaming video services. Whether consumers lost their income due to the covid-19 pandemic, or whether their incomes remained stable, there was no statistical difference between them.

The biggest difference is between generations. Generation Z and millennials, more than any other generation, prefer the pure subscription model because it is familiar to them from childhood to adulthood, while the baby boomers and the mature generation prefer pure advertising options that are very similar to television. However, the advertising tolerance of all consumers is only 7 to 14 minutes per hour. Beyond this range, they will “change channels.”.

The option of adding ad supported streaming video can help streaming video services attract a wide audience. Given the increasing cost of producing original TV series (up to $25 million per episode) and exclusive streaming rights for sports leagues, streaming services may need to combine subscription and advertising to obtain “ultra high quality” content to keep the number of users stable.

During the outbreak, the number of video game users increased significantly

Before the covid-19 crisis, video games and related content have become more and more popular, and compete for more media and entertainment time. As more and more people free up their free time to play mobile games and play games crazily in a highly immersive social world, intergenerational differences become increasingly blurred.

But there are still many differences between generations. Before covid-19, 24% of respondents ranked playing video games as one of their top three favorite entertainment activities. But for generations Z and millennials, it’s 44% and 37%. These young participants can play some form of video game for the rest of their lives or most of their time.

As we can see in VOD, more and more consumers are playing video games crazily. Previous surveys before covid-19 found that 29% of consumers were immersed in games every week, playing for an average of 3.3 hours at a time. Intergenerational differences also exist, especially for digital natives: 52% of generation Z and 46% of millennials say they play games every week (Figure 8).

Since the outbreak of the crisis, the number of game users has increased dramatically, reaching 75% in some aspects. According to the survey, 29% of U.S. consumers said they were more likely to play video games in their spare time than watch videos. Seven percent of all consumers subscribed to video game services for the first time during the crisis. We also found that nearly half of American consumers have participated in some form of video game activity since the outbreak of the crisis. In millennials, it’s 69%; in generation Z, it’s 75%.

School closures, home orders and rising unemployment have given more people more time to play video games.

Of those who played video games during the crisis, 34% said they played more with their families at home, while 27% said they played games to socialize with others (Figure 9). It’s worth noting that a third of American consumers and nearly half of generation Z and millennials say video games have helped them through difficult times.

Playing video games has become a social experience. Top multiplayer games can accommodate millions of players at the same time and introduce very popular non game live activities. With the popularity of video games by more and more children and teenagers, their parents are also attracted by video games. These behaviors may continue until after the covid-19 crisis. However, as people return to public activities, commuters and full employment, they may not have more time to experience video games and related content.

More and more people are watching video games

With the rise of video and social communication media platform, game video has become a kind of viewing experience. Before covid-19, about 25% of consumers watched live games every week and recorded videos of other people playing games. For millennials and generations Z, it’s about 50%. Since the onset of the covid-19 pandemic, these numbers have remained dominant. The audience mainly watch the game tutorial and game strategy, professional game players and E-sports players live their daily games and E-sports competitions. Due to the cancellation of offline sports events, many professional athletes keep in touch with fans through live broadcasting and commenting on their game playing methods. In fact, despite the covid-19 crisis, E-sports enabled traditional sports such as basketball and racing to exist in virtual games.

During the pandemic, the viewing time of the live head game service increased by 50%. However, in terms of the number of people watching and playing games, it remains to be seen how long this increase will last after the epidemic blockade is lifted. However, the phenomenon of playing, broadcasting, watching and socializing inside and outside video games is likely to continue to expand after the crisis.

What is immutable? What will happen in the future?

New champions create conditions and opportunities for people to try new things, but will these new interests disappear? Or do we see the beginning of a new market? During the pandemic, 38% of consumers surveyed tried new digital activities or subscriptions for the first time.

Most people try to watch live events through social platforms, web applications or video conferencing, and watch videos with others. More than two-thirds said they were likely to continue with these new activities or subscriptions. Media and entertainment companies may not have thought that videoconferencing might be a new form of content, but this is an era of upheaval.

In fact, the crisis has also intensified the discussion about film and television distribution. Following the closure of cinemas, several studios have successfully released new films directly to streaming video services. During the pandemic, 22% of consumers surveyed (30% of generation Z and 36% of millennials) paid to watch premieres on streaming media. Of those who did, 90% said they might do it again. Of those who did not, 42% said the service was too expensive. Studios may need to reassess their distribution model and revise the price of streaming distribution for premieres.

While some may aspire to return to the experience of a large screen theater, others enjoy the comfort and convenience of watching at home. Obviously, covid-19 has changed people’s choice of viewing mode, and how people will return to the viewing space remains to be seen.

Due to the popularity of the new crown, sports and field activities have been greatly affected. At present, it is not clear when collective activities can be carried out safely, nor is it clear what people’s willingness for collective activities is. We found that more than a third of consumers said they would feel uncomfortable if they had been online for more than six months. It’s a microcosm of time, but it emphasizes public anxiety and uncertainty. It is worth noting that 50% of millennials are willing to participate in sports in the next six months, while only 28% of the baby boomers agree (Figure 10).

With no new live sports to watch during the pandemic, many fans turned elsewhere – 46% of the sports audience said they chose to watch their favorite shows and movies, while 11% chose to watch virtual sports events. Many sports and car racing leagues have shown some simulation sports. As expected, virtual sports are becoming more and more popular among millennials: 19% of people are watching virtual events.

From a broader perspective, live broadcasting has become a vivid example, reflecting the impact of the new crown crisis, as well as the impact of the accelerated integration of reality and digital technology. In the process of digital media trend survey, convergence continues: many activities have released digital and virtual services, so people have more opportunities to experience and find things of value according to their wishes. The great changes brought about by covid-19 have shaken the foundation of resistance to change. It reveals new opportunities and leads to innovation for media and entertainment companies that were previously reluctant to change.

The great changes brought about by covid-19 have shaken the foundation of resistance to change. It reveals new opportunities and leads to innovation for media and entertainment companies that were previously reluctant to change.

Leading the future of media and entertainment

Before the popularity of covid-19, streaming video has been expanding in various generations, causing a lot of competition in content library, original content production and pricing. As the choice of media and entertainment continues to increase, more and more consumers are trying, subscribing, canceling and re subscribing when they are looking for content, enjoying trial and evaluating its value. During the covid-19 pandemic, these conditions continued or increased. However, looking forward to the future, media and entertainment companies need to solve more difficult problems, such as the problems arising during the pandemic, the time and money available to consumers, the emergence of more and more choices, competing for the attention of users, the challenges in media production and the need to restart live broadcast activities.

Media and entertainment leaders can use this unprecedented moment to reassess their entire business. Here are some key issues that need to be explored:

How can the media retain customers and prevent them from losing after the probation period?

If the economic recovery is slow, how will consumers adapt to lost income and lower wages? Will they cut back on paid services and switch to free products?

As consumers demand more pricing options, how should the advertising support model be iterated?

What happens if the content supply channels for original content are stagnant for too long? Will it speed up the loss of consumers?

How to restart studio production and live entertainment and resume business? Can they make better use of technology to interact with audiences and fans while ensuring physical operation?

How much entertainment time will consumers spend on video games and live services? Will virtualized sports events only become a popular product, or will sports leagues find ways to integrate these events to attract more fans?

With the growing demand for more social and virtual content, how will these content increase or compete with traditional video content?

Many media and entertainment companies have seen subscriber and user growth both before and after the covid-19 outbreak. As a way to comfort and kill time in difficult times, entertainment has become more important than ever before. Consumers have more choices of services, and the cost is less. Media and entertainment companies that offer the best value for money and are worth the time people spend on their product content will be the leaders in the next decade. Companies that fail to do so will miss out on the opportunities brought about by this crisis.

From: Tencent Media Research Institute read more: 2017 U.S. International Student trend survey report Jackson healthcare: 2014 U.S. doctor practice trend survey report: overseas mobile tool market is in a red sea, cheetahs and tigers compete with each other comScore: survey data of 50 digital media companies in the world in February 2013 Google still ranks first in the field of desktop and mobile users touch treasure big data: overseas mobile application market trend in the first half of 2019 Hurun Research Institute: 2017 China’s high net worth customers’ overseas home purchase prospects (download attached) looking for opportunities in crisis: Overseas Insurance epidemic situation impact analysis (download attached) easy view: 2017 overseas medical market research (download attached) talkingdata: domestic users’ overseas app Ai Rui Consulting: 2014 overseas game video live platform case study – afeecatv Consulting: domestic average daily use of digital media is more than half of emarketer: in 2013, the consumption time of digital media in the United States exceeded that of TV for the first time. SlideShare: 2014 American digital media report Neilsen: American adults spend 11 hours a day on digital media. ComScore: U.S. mobile should Report (attached)

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