Accenture :  Video-over-internet consumer usage survey 2011
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The 2011 Accenture Video-Over-Internet Consumer Usage Survey results give companies a look not only at current trends, but also at where those trends are leading, in terms of both video viewing habits ...

The 2011 Accenture Video-Over-Internet Consumer Usage Survey results give companies a look not only at current trends, but also at where those trends are leading, in terms of both video viewing habits and where revenue growth is most likely to occur:

Although the television still dominates consumers’ viewing preferences (at 92 percent), the diversity of electronic devices that consumers use to view video is evenly divided: 75 percent of respondents use a desktop computer, 72 percent use a laptop and 63 percent use mobile devices to access content. These results suggest a ‘form factor’ challenge when it comes to mobile video viewing. With broad access to video across devices with large screens, mobile video viewing will rarely be the first choice among many consumers.

Watching video on non-traditional devices is trending upward. In the past year, viewing increased on laptops (35 percent), desktops (28 percent) and Internet-enabled TVs (26 percent). These trends were seen across all age groups. Growth percentages for most devices were nearly identical for the 25-to-34 year old and 18-to-24 year old age groups.

The myriad of content delivery choices available in the digital world has also changed the nature of the entire viewing experience, including traditional TV watching. There is no longer a single delivery channel or device that receives the uninterrupted attention of viewers. Of those surveyed, 81 percent said they multi-task with other devices while watching TV. Nearly half (48 percent) use a laptop while watching, 41 percent use a mobile device and 28 percent use a desktop computer.

When it comes to choosing their favorite Internet/broadband TV features and functions, the largest number of respondents (40 percent) pointed to catch-up TV, which enables them to watch content that they may have missed. Only 14 percent of respondents wish to surf the Web on their televisions and only 11 percent desire interactive and social networking functionality.

Although consumers are viewing video on multiple devices, quality rules the day when they consider selecting new services. 48 percent identified clarity of picture and speed of content delivery as the most important technical features they look for in an Internet video service. This proportion was statistically consistent across all age groups. High-definition viewing was a distant second, at 27 percent.

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Accenture : Video-over-internet consumer usage survey 2011 Document Transcript

  • 1. Consumers of all ages aregoing over-the-topResults of the 2011 Accenture Video-Over-InternetConsumer Usage Survey
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  • 3. The era of Internet video is here, and Although considerable challenges lie communications companies—to haveit’s influencing the viewing behaviors ahead for broadcasters, telcos and a better understanding of changingof more than just younger generations. other companies looking to position consumer behaviors and interests, so theyAccording to new research from themselves optimally within the can direct their investments properly.Accenture—the 2011 Video-Over- Internet video ecosystem, it’s clearInternet Consumer Usage Survey—more that consumers are ready—and in some To give companies deeper insights intothan three-quarters of consumers of all instances may even be ahead of the their target customers as they launchages in major geographies around the companies—in terms of their vision or extend broadband TV and videoworld are now watching video content for how, when and where they watch capabilities, Accenture has conductedover the Internet via a PC or TV—also and interact with video content in the a global survey of more than 6,500called “over-the-top TV” (see Figure 1). digital age. consumers around the world across major geographies: the United States,Of course, the fact that 85 percent of New research from United Kingdom, Australia, Brazil,people ages 18 to 24 are Internet video Germany, Italy and Spain.consumers is hardly surprising. But even Accenture: consumeramong consumers over the age of 65, trends in the Internet The results give companies a look not only at current trends, but alsotwo-thirds of our survey respondents are video industry at where those trends are leading, injoining the Internet video movement. The amazing growth of broadband is terms of both video viewing habits andAnd 82 percent of those in one of shaking up how people around the world where revenue growth is most likelythe most important demographics to watch TV and, in general, how they to occur. Although traditional linearadvertisers (ages 35 to 44) are now consume all types of video content across TV offerings still dominate consumeraccessing and interacting with video all types of devices. It’s also shaking up viewing habits, that dominance isover desktops, laptops, Internet- business models and entire industries, already in question.connected TVs and mobile devices. as Web-enabled platforms drive a rapidThese are numbers that cannot be uptake of digital video services. Case in point: two-thirds to three-ignored. Consumption of video over the fourths of consumers are already In this environment of overwhelming using other devices including desktopInternet is now more than a millennial- market potential, it’s more important computers, laptops, DVD players, mobilegeneration phenomenon; it is an than ever for all the players in this devices and even broadband-enabled TVsactivity that crosses all ages. Video over market space—broadcasters, content to watch video.the Internet is on its way to becoming providers, network operators and otherthe new mass media.Figure 1. Proportions of consumers (total and by geography) who watch video over the Internet100% 89% 86%80% 80% 79% 77% 75% 72% 65%60%40%20% 0% Total United States Brazil United Kingdom Germany Italy Spain Australia 3
  • 4. Consumers are The need for over-the-top players to adopt new capabilities and business What does it mean that devices (Internet-connected TVs) so recentlystill watching models may increase the demand introduced have already reached a for specialty firms and partners with level of acceptance equal to the use both the technology and experience of mobile devices to watch video? Thetraditional TV, to bring compelling offerings to market at an accelerated pace. This finding may reflect the “form factor” challenge when it comes to mobilebut they’re demand is heightened by a constantly evolving landscape of services and video viewing: with broad access to video across devices with largeralso viewing devices which, our research finds, are increasingly compelling to consumers screens, mobile video viewing will rarely be the first choice among manycontent over all over the world. consumers. Providers will need to focus even more on video content created Video on everything?an amazing The growth of video specifically for the small screens of mobile phones.range of other watching across devices Watching TV certainly isn’t what it Looking at geographic differences, several areas of the world are out indevices and used to be. Once confined to a single kind of device, and an experience front. Brazil leads the way in desktop video watching (82 percent) and Italyinteracting that involved an undifferentiated audience “leaning back” to enjoy in mobile video watching (76 percent). Consumers in the United States lagwith content content pushed to them, the video experience has become much more of behind in several respects when it comes to video over the Internet:and people a “lean-forward” activity that involves choosing, interacting and sharing. as compared to other geographies surveyed, the fewest percentages watchduring the video on laptops (64 percent) and This is a trend that’s been growing mobile devices (47 percent). Brazil’s in the marketplace, and our research consumers again lead the pack when itviewing confirms it. The consumers participating in the Accenture Video-Over-Internet comes to using Internet-connected TVs (78 percent) while Australia shows theexperience. Usage Survey are certainly still watching traditional, passive, linear TV, lowest level of usage (55 percent). but they’re also accessing and viewing However, it’s the pervasiveness of content over an amazing range of Internet video-watching across age other devices and using other means to groups and genders that is truly an interact with content and people during outstanding development. Nearly equal the viewing experience. percentages of the men (79 percent) and women (75 percent) surveyed are online For example, seventy-five percent of video consumers. Numbers across the consumers globally have used a desktop most profitable age demographics are computer to view video content; 72 also extremely strong: 85 percent of 18 percent have watched video on a laptop; to 24 year-olds; 84 percent of 25 to 34 and 63 percent have watched video on a year-olds; and 82 percent of 35 to 44 mobile device or Internet-connected TV. year-olds (see Figure 3). Tablet computers such as iPads—which are new in the marketplace—lag the pack, with only 21 percent of consumers saying they’ve used them for video watching (see Figure 2).4
  • 5. Figure 2. Proportions of consumers (total and by geography) who watch video—by device100% 92% Total United States80% Brazil 75% United Kingdom 72% 71% Germany 63% 63% Italy60% Spain Australia40% 21%20% 0% TV via traditional Desktop Laptop DVD/Blu-ray TV via broadband Mobile iPad/tablet sources computer computer or Internet phone/deviceFigure 3. Proportions of consumers who watch video over the Internet—by age and gender100% 85% 84% 82%80% 77% 79% 75% 76% 71% 64%60%40%20% 0% Total Male Female 18-24 25-34 35-44 45-54 55-64 65+ 5
  • 6. Trending upward, And these trends are showing up in age viewing on mobile devices. The viewing groups beyond the expected numbers of video over a laptop has dramaticallyacross all age groups of the millennial generation. Indeed, increased among 18 to 24 year-oldsEqually compelling are the trend lines. for most devices, growth numbers (54 percent) and 25 to 34 year-oldsOur global survey respondents indicated are nearly identical for the 25-34 (46 percent), but has also increased bythat they were increasing their use year-old category as for the 18-24 about one-third for consumers betweenof non-traditional devices to watch year-old category. Thirty-one percent the ages of 35 to 54 (see Figure 5).video. Viewing increased in the past of consumers in both age groups, foryear on laptops (35 percent), desktops example, have increased their video(28 percent), Internet-enabled TVs viewing on desktops; 34 percent in(26 percent) and mobile devices (23 both groups have increased videopercent) (see Figure 4).Figure 4. Proportions of consumers (total and by geography) whose video watching increased on each device in the past year50% Total United States40% Brazil United Kingdom 35% Germany Italy30% 28% Spain 26% Australia 23% 23%20% 19%10% 7%0% Laptop computer Desktop TV via broadband TV via traditional Mobile DVD/Blu-ray iPad/tablet computer or Internet sources phone/deviceFigure 5. Proportion whose video viewing has increased on each device in the past year—by gender and age60% Total Male50% Female 18-24 25-3440% 35-44 35% 45-54 55-6430% 28% 65+ 23%20%10%0% Laptop computer Desktop computer Mobile phone/device6
  • 7. Dealing with a more analog world isn’t going away, either: What do consumers want? about one-third of consumers regularlyfragmented viewing read a book or newspaper while What features and functions of Internet/ broadband TV are most appealingexperience watching TV. to consumers? The largest share ofThe “lean forward” experience enabled Again, nearly identical percentages of respondents—40 percent—pointedby the digital world is also changing the 18 to 24 year-olds (94 percent) and 25 to functionality with which they arevery nature of TV and video viewing. to 34 year-olds (92 percent) multitask. already familiar: catch-up TV thatThere is no longer any delivery channel About three-fourths of those ages 45 enables viewers to watch content theyor device that receives the uninterrupted to 64 also are engaged in multiple may have missed, recorded up to aattention of viewers. The viewing media experiences as they watch TV. week or so in the past. This finding isexperience is now made up of an ever- additional support for the contentionchanging mix of different devices for This fragmented viewing experience that consumers are ahead of the market:different reasons, all at the same time. might at first appear to present they want unlimited content at their challenges to groups such as traditional convenience and actually see less valueThe economics of free-to-air, advertisers looking for a share of in the more traditional, but constrained,advertising-funded broadcasting were dedicated consumer “eyeballs.” On model of the personal video recorderbased on the economy of attention: the other hand, companies able to (PVR) (see Figure 6).the ability to capture and maintain leverage this multi-device, multichannelpeople’s attention during commercials, experience to reinforce messages Looking at other service features ofat scale. These traditional economics or content across devices have an video over the Internet, the surveyare now in question according to opportunity to gain even more viewer results point to the fact that consumerssurvey results, as eighty-one percent awareness and loyalty. Today, very few are now looking to experience the sameof consumers multi-task with other broadcasters and content providers have kinds of freedom, unlimited choicesdevices while watching TV, and truly compelling multi-device services and compelling user experience withpresumably, this behavior is intensified that can leverage these consumer their video and TV viewing that theyduring 30-second advertising spots. behaviors. Yet consumers are clearly have grown accustomed to on theirAlmost half of consumers (48 percent) indicating that they have the mental computers. However, they do notuse a laptop computer while watching; bandwidth to cope with additional necessarily want to surf the Web and41 percent use a mobile device; and 23 information, services and entertainment. see relatively little value in using the TVpercent use a desktop computer. The as a device for widgets.Figure 6. Most important Video-Over-Internet service feature: total and by geography50% Total United States40% 40% Brazil United Kingdom Germany Italy30% Spain 24% Australia20% 14% 12% 11%10% 0% Catch-up TV to pause Personal video recorder Surfing the Web on Ability to watch content Having interactive/social and watch at leisure (ability to store and your TV on other devices networking functionalities watch whenever) 7
  • 8. Consumers are indicating that good Compelling functions Tablets: supporting a morecontent is as important as ever, but thekey driver for adopting a new service for PC and laptop interactive experienceis to package that content with an eye video viewing As noted previously, iPads and othertoward a more personalized experience. The Accenture Video-Over-Internet tablet computers are just now enteringThey want to watch video on their survey also asked consumers about the arena and thus are not yet aterms—not by appointment. specific features and functions they significant factor in Internet video would be interested in across different by consumers.  However, consumersOn the horizon are functions related to are already aware of how the tabletsocial networking. These are features devices. More than half pointed to one of the key capabilities of Internet TV: might change their viewing experience.that providers will have to increasingly Although the greatest percentage ofincorporate into their offerings. the ability to store and record content locally, and then view it on multiple consumers (54 percent) are interestedAlthough the numbers of interested in using their tablets for fairly standardconsumers appear low at this time, devices at their convenience. In this case, the ability to record content on the PC video-on-demand and catch-upthese lean forward capabilities represent functions, another 44 percent citeda growing trend in the industry. Interest and then watch it later either on that computer or on a TV was compelling interest in the ability to interact within social networking as a service feature an on-air program to receive additionalprovided though Video-Over-Internet functionality to majorities of consumers across most geographies (see Figure 7). content related to what’s being viewed.was slightly higher among 18 to 24 year Another 39 percent were interestedolds (16 percent) than for those ages 25 Employing a catch-up feature on a in access to interactive content duringto 64 (10 to 11 percent). computer was of interest to 43 percent a show (e.g., placing a bet on a game of consumers, and video on demand or voting).The greater issue here is control: onceconsumers experience control over was of interest to 40 percent. Forty-one percent were interested in the more These findings again point to a trendwhat content they watch and when, it’s that is likely to dramatically alter howonly a small step to additional matters expansive set of TV channels that can be made available to them through video content is provided to consumersof control such as on what device and and how other media and deviceswith whom they watch and interact. Internet-enabled TV. will be used to reinforce the primary experience and device being used.Figure 7. Preferred services from content providers via Internet on a computer/laptop—total and by geography70% Total60% United States Brazil 52% United Kingdom50% Germany 43% Italy 41% 40%40% Spain 36% Australia30%20% 20% 18% 14%10% 0% Ability to use PC Catch-up TV New TV Video on TV channels Apps such as Recos and Social network to record TV channels not demand (i.e., available on TV weather, alerts for features content and watch available on TV movie or TV news, stocks, programs of later on PC or TV show library) horoscope interest8
  • 9. Quality is king This concern about quality was issue looks to be a growing concern of underscored by another finding from the younger consumers, who appear to be“Content is king” has been a standard survey: the biggest frustration consumers more impatient: 61 percent of consumersphrase of the broadcast industry for currently experience with Internet video ages 18 to 24 are concerned about themany years. The statement remains is the time required to buffer, download time required to download and buffertrue, but the technical delivery quality and play a video. Clearly, one of the videos. That percentage consistentlyof that content is now on the minds of issues providers must anticipate and drops about seven percentage points asmany consumers as well. Asked to name solve if they are to be successful in the one moves up the age levels. But thatthe most important technical feature IP video marketplace is the ability to also means that quality will be a growingof Internet TV, about half of consumers handle congestion on the network and concern as those millennials become keyaround the world (slightly higher in the perform streaming in such a way as to buyers in the future (see Figure 9).United Kingdom and Australia) cited deliver a high-quality experience.quality of service (specifically, clarity In general “poor video quality” wasof the picture and speed of content The need for quality becomes a kind of a concern of more than one-third ofdelivery). These numbers are almost “reality check” for the over-the-top TV consumers (35 percent). Concernsuniformly consistent across all age era. Yes, exciting functionalities are here about advertising interfering with thegroups, too. because of broadband-enabled video: viewing experience was named by multidevice convergent experiences, about the same number of respondentsThe desire for quality viewing far catch-up TV, video on demand, unlimited (36 percent). Costs were not cited asoutranked other features such as channels, personalized playlists and a primary concern: only 16 percent ofhigh-definition (27 percent), the more. But simply offering these services consumers are worried about increasedease of the user interface in enabling is not enough; based on consumer broadband data costs from downloadingsearch and content management feedback, quality will play a key role in videos, though that number was muchcapabilities (14 percent), and the use separating winners and losers.  “Best higher in Brazil (30 percent).of recommendation engines to point effort” quality is no longer acceptable.viewers toward content in which theymight be interested (11 percent) (see As opposed to other areas of our surveyFigure 8). where consumers across all age groups shared similar interests, the qualityFigure 8. Most important Video-Over-Internet technical feature: total and by geography70% Total United States60% Brazil United Kingdom50% 49% Germany Italy Spain40% Australia30% 27%20% 14% 11%10% 0% Quality of service (i.e., HD (high-definition viewing) User interface and ability Quality of recommendations clarity of the picture, to find and manage video of videos/shows I might be speed of content delivery) content interested in viewing 9
  • 10. The ultimate stakeholder, however, isManaging the effects Conclusion: Listening the consumer. Understanding consumerIs Internet TV beginning to surpass other to the consumer Video-Over-Internet preferences isimportant sources of revenue such as Different types of companies are critical to success, regardless of wherepremium subscription services? These experimenting with Video-Over-Internet a company seeks to position itself ineffects are only beginning to be seen services, and savvy players are learning the overall ecosystem.and are unclear as of yet. Although both from past mistakes and currentabout two-thirds of consumers (fairly Video delivered over broadband stumbles. Original IPTV offerings, forconsistently across geographies) have connectivity is no longer a phenomenon example, did not meet expectationsnot changed their premium channel confined to younger generations. As the because they tried to imprisonsubscriptions because of Internet TV, 2011 Accenture Video-Over-Internet consumers in proprietary, walledresults indicate an initial net loss of Consumer Usage Survey shows, growing gardens. Mobile video has struggledpremium channel subscriptions of about percentages of consumers across all age with overcoming the restrictions ofeight percent. Consumers are possibly groups are watching video on Internet- smaller screens and devices.not fully convinced that over-the-top enabled devices.video is a full substitute for premium In general, openness is becoming an Consumers are indicating strongly thatpay TV, but as consumers test new, important marketplace characteristic, they are ready for a true multi-deviceover-the-top services, a progressive and also a key to success. Since the experience—one that goes beyonddowngrading of subscriptions may occur. birth of commercial television, TV simply replicating traditional TV on broadcasting has been a businessSimilarly, Internet video has had only another device to creating a new dominated by a fairly limited numbera modest effect on video-on-demand experience where content is important, of stakeholders. Today, many players(VoD) purchases. About three-fourths of quality is critical and personalization of are jockeying for position. Newrespondents said their VoD purchasing the service is a must.  Over-the-top TV stakeholders—telcos, Web searchhabits have remained about the same; can succeed—if companies understand engines, portals, device and softwareeight percent or so claim to have and embrace new consumer behaviors. giants, and others—are looking toreduced VoD purchases, but about an play a key role in how the industryequal amount say they are now actually evolves. This is now a wide-open—andpurchasing more. increasingly global—playing field.Figure 9. Frustrations about viewing Internet video on computer, TV and other devices—by gender and age*70% Total60% Male 58% Female 52% 18-2450% 50% 25-34 35-4440% 45-54 55-6430% 65+ 25% 23%20% 11%10% 0% Time required to Advertising during Poor video quality Poor navigation/ Increased broadband/ None buffer/download/ the program (if not HD) search/EPS high-speed data costs play video from downloading video*Data in the chart is reflective of the 4,566 survey respondents who are currently viewing Internet video on their computer, laptop, mobile phone, tablet, or other device.10
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  • 12. Contact About the authorsFor more information about the Marco VernocchiAccenture 2011 Video-Over-Internet Global Managing Director, Media &Consumer Usage Survey, please contact: Entertainment, Accenture marco.vernocchi@accenture.comJanice Burg-LeviDirector of Global Industry Marketing, Francesco VenturiniCommunications & High Tech, Accenture Global Broadcasting Lead, Accenturejanice.burg-levi@accenture.com francesco.venturini@accenture.com Dipan Patel North America Video Lead, Accenture dipan.d.patel@accenture.comCopyright © 2011 Accenture About AccentureAll rights reserved. Accenture is a global managementAccenture, its logo, and consulting, technology services andHigh Performance Delivered outsourcing company, with more thanare trademarks of Accenture. 215,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.