Parks Associates have announced new consumer research and analysis showing three out of seven unique consumer segments account for the majority of mobile video viewing, averaging 9 hours per week on a smartphone or tablet compared to less than 15 minutes per week for the remaining four segments. The average among all U.S. broadband households is 2.9 hours per week, and these three groups represent less than one-third of all homes.
360 View: Entertainment Services in U.S. Broadband Households, with research from a 1Q 2014 consumer survey of 10,000 U.S. broadband households, identifies these three segments as Travelers, Avid Viewers, and Multiscreeners. They are three of seven total segments the research firm identified based on consumers’ video viewing habits across screens, including TVs, computers, and mobile devices. These three segments also have high percentages of younger consumers, with roughly 50% from each segment ages 18-34, but there are notable differences among them, especially in pay-TV subscriptions.
“Many in the industry often refer to young consumers as a single group, yet our research clearly shows that there are multiple groups of young consumers,” explains Brett Sappington, director, research, Parks Associates. “Multiscreeners are most likely to be cord cutters. Only 76% subscribe to a pay-TV service, compared to 87% of Travelers and 93% of Avid Viewers. Ultimately, each segment has unique characteristics, viewing habits, and spending patterns.”
These three segments account for 31% of U.S. broadband households. Highlights of the three consumer groups include:
- Strong affinity for mobile services, devices, and viewing
- Above-average quantity of video viewing on mobile devices
- 87% subscribe to a pay-TV service
- Prefer watching video on all platforms and watch over 80 hours of video per week
- Spend far more than any other segment on video and video-related services
- 93% subscribe to a pay-TV service
- Only 76% subscribe to a pay-TV service
- 70% subscribe to an OTT service
- Only watch 8 hours of video on the TV per week, compared to 20 hours per week for Travelers and 40+ hours per week by Avid Viewers
- Watch 22 hours of video per week on Internet-connected devices
- Believe that online video is just as good as pay-TV
“The viewing population is as diverse as the market, and each segment requires a unique strategy,” Sappington says. “The video industry will need to market products and services to each group in different ways. Even Multiscreeners, who have a higher incidence of cord cutters, spend an average of over $57 per month on ‘incremental’ video, physical media, downloads, pay-TV VOD, pay-per-view, movie tickets, and OTT services.”