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Today, consumers have a vast array of choices for accessing premium video content. But online video, particularly streaming, is the fasting growing category. In the United States, 48 percent of ...

Today, consumers have a vast array of choices for accessing premium video content. But online video, particularly streaming, is the fasting growing category. In the United States, 48 percent of consumers have increased their streaming in the last two years. And while free/ad-supported video is the most common, opportunities for monetizing content are being driven by the convenience of multi-screen access and the growing breadth of content. More info: http://cs.co/ibsg-streaming

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Streaming Video Enters the Mainstream Presentation Transcript

  • 1. Streaming Enters the Mainstream The Upward Arc of Online Video, Driven by Consumers @CiscoIBSG For more information: http://cs.co/ibsg-streamingCisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 1
  • 2. Consumers Now Spend More Time Watching Internet Video Than DVDs/Blu-ray, VoD, or Live Premium Cable Channels % of Time Spent Watching Categories of Professionally Produced Video  Internet video captures 13.8% of time spent watching Live television professional video, comprised 4.09 6.82 of downloaded Internet at Recorded television (PVR) 2.84% and streaming Internet 6.96 video at 10.92% Streaming Internet video 42.91  Streaming internet video alone 10.93 Downloaded Internet video is tied with DVDs or Blu-ray discs use DVDs or Blu-ray discs 2.84  Internet video use at 13.8% may soon surpass PVR use Live premium cable 10.92 at 14.53% channels (e.g., HBO, Starz) Movies in the  Live TV remains the largest 13.8% 14.53 cinema (e.g., AMC Theaters) component at 42.91% of Video on demand (VOD) time spent Sample Size = 1152 Q: Of the time that you spend watching professionally-produced video, what percentage is in each of the following categories? Source: Cisco IBSG Media Cloud Survey, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 2
  • 3. 2012 Olympics Saw Significant Viewing Online, on Multiple Platforms and Devices Audience (M) 4.9M to 7.3M Unique Daily Browsers 10000 4800 1000 100 52 36 10 Usage by hour across the day by device - for 28 July to 9 Aug 1 Global TV UK TV UK Online Connected TVs Showed a Strong UsageSource: BBC, 2012; Cisco IBSG AnalysisCisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 3
  • 4. Internet Video Use Is Rising Across All Devices, With Tablet Use Increasing the Most and Desktops the Least Change of Watching Internet Video in Last Two Years by Device Types (Current Users of Each Device) Net 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Change Tablet computer 4% 36% 61% 57% 50% e-Book reader 6% 39% 56% 49% Streaming Internet video device 7% 37% 56% 49% Smartphone 7% 37% 56% 47% Gaming console with Internet connection 9% 35% 56% 48% Laptop computer 7% 38% 55% 46% Connected HDTV 6% 42% 52% 39% Portable gaming device with Internet connection 11% 39% 50% 39%Cable, satellite, or IPTV set-top-box connected to the Internet 8% 45% 47% 33% Portable media player 11% 44% 44% 31% Desktop computer 13% 43% 44% 37% Other 13% 38% 50% Decreased Stayed the same Increased US Broadband Users; n=791 Q : How has the amount of Internet video you watch on each of the following devices changed over the past two years? (professionally –produced video) Source: Cisco IBSG Media Cloud Survey, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 4
  • 5. But Television and Set-Top Boxes Still Rule for Those Who Are Already Watching Internet Video % of Internet Video device users by time/week watching Internet Video by device types 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cable, satellite, or IPTV set-top-box connected to the Internet Connected HDTV Streaming Internet video device Gaming console with Internet connection Laptop computer Tablet computer Portable gaming device with Internet connection e-Book reader Desktop computer Portable media player Smartphone Other 1-29 min./ week 30-59 min./ week 1-2 hours/ week 3-5 hours/ week 6-8 hours/ week 8 or more hours/ week Q: How much Internet video do you watch on each of the following devices? US Broadband Users; n= 809 (professionally—produced video) Source: Cisco IBSG Media Cloud Survey, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 5
  • 6. Free/ad Supported and Subscription Sites Are Used More Frequently Than Transactional VoD and Pirated Video Frequency of Watching Internet Video by Source Types 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Free Internet video from media company sites 10% 33% 21% 9% 28% Free Internet video from aggregator sites 13% 28% 18% 9% 32% Paid Internet video subscriptions 14% 24% 12% 6% 44% Television programs, accessible online as part of your subscription 7% 18% 12% 7% 56% Individual rentals of Internet video 2% 11% 15% 9% 62% Internet video from file sharing sites and torrents 5% 10% 11% 6% 68% Individual purchases of Internet video 2% 8% 9% 5% 76% Daily Weekly Monthly Yearly Never Q: How often do you watch Internet video from the following sources? US Broadband Users; n= 809 (professionally produced video) Source: Cisco IBSG Media Cloud Survey, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 6
  • 7. 42% of Consumers Watch TV Shows Over the Internet Daily; 52% Watch Online Movies Weekly Frequency of Watching Internet Video by Content Types 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% TV shows 42% 32% 9% 10% 6% Movies 12% 40% 22% 12% 14% Short videos 13% 28% 23% 14% 21% Music video 12% 23% 20% 18% 27% Sporting events 8% 26% 14% 16% 35% Mini-sodes 5% 16% 15% 14% 50% Other events 3% 13% 20% 28% 36% Daily Weekly Monthly Yearly Never Q: How often do you watch the following categories of professionally US Broadband Users; n= 809 produced Internet video? Source: Cisco IBSG Media Cloud Survey, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 7
  • 8. Consumers Seek Free Content and Convenience but Will Pay for Quality of Experience and Specific Content Most Important Factors Influencing How and Where to Watch, and Willingness to Pay Whether I have to pay At a time of my choosingAbility to watch “catch-up TV” (i.e., watch recent shows you missed when they… Absence of technical problems (i.e., no delays, freezing) Most Desired The quality of the picture/sound Ease of finding and acquiring video to watch Availability of specific favorite shows or events I already enjoy Convenience of acquiring video (i.e., can start watching immediately) On a device of my choosing Value: Ability to pause or rewind live video You get what you pay for Scene selection and chaptering (e.g., special scenes, directors cut, etc.) Compatible / optimized for the device or application I want to use A “seamless” experience where the content and device are integrated Luxury Availability of the absolute latest content This would cost me but not sure I need it Whether I have to see advertisements Most important factors to decide how and where to watch Most important factors influencing willingness to pay 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Sample Size = 1152 How/Where: When it comes to watching video, which of the following Pay: Which of the following factors would have the biggest impact on your factors are most important to you in deciding how and where to watch? willingness to pay for video content (i.e., including renting, subscribing, or one-time purchases)? Source: Cisco IBSG Media Cloud Survey, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 8
  • 9. A Broad Library and Easy Access to Internet Video on TV Will Draw More Consumers Factors to drive more Internet video usage 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% More free video content 46% Broader availability / range of videos 23% Content is king Ability to watch Internet video on a large TV screen (e.g., 40" HDTV) 21% Viewing experience matters Owning a device that made it easier / better to watch Internet video 18% Lower home broadband costs 18% Low broadband costs help Having an affordable unlimited mobile data plan 15% Internet video adoptionAbility to watch content I download or buy on a broader range of devices 11% (i.e., no compatibility issues) Wider mobile broadband (e.g., WiFi, 4G) coverage, to watch mobile 9% videoGreater flexibility to share videos, either on DVDs I burn or through social networks, e-mail, etc. 7% Social sharing doesn’t matter Other (please specify) 3% None of the above 22% US Broadband Users; n= 1152 Q : What would encourage you to watch / obtain more professionally-produced Internet video? Source: Cisco IBSG Media Cloud Survey, 2012 Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 9
  • 10. Digital Lockers Will Drive Additional Sales and Rental of Online Video for 27% and 19% of Consumers, Respectively Digital Locker Impact on Video Buy/Rent 70% 66%  Digital Locker has greater 62% impact on buying than 60% renting video. 50%  When looking at frequent internet video users 32% 40% Buy more video: 27% would be more likely to Rent more video: 19% buy, and 24% would be 30% more likely to rent. 23% 20%  Digital locker services 15% may result in greater 10% 10% 8% purchases of video 5% 4% 4% 3% content by consumers 0% as well as an uptick in Significantly less Somewhat less No Change Somewhat more Significantly more video rentals. Buy Rent Sample Size = 1152 Q: If you had a digital locker with all of the features you have just evaluated, how would that change the amount of video you buy/rent?Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 10
  • 11. Consumers Will Increase Internet Video Use on all Devices in the Near Future, With Mobility a Key Factor Expected Change of Watching Internet Video in Next Two Years by Device Types 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Laptop computer 6% 52% 42% Tablet computer 5% 55% 40% Smartphone 5% 56% 39% Cable, satellite, or IPTV set-top-box connected to the Internet 6% 57% 37% Connected HDTV 5% 59% 36% Gaming console with Internet connection 6% 58% 35% e-Book reader 6% 62% 33% Desktop computer 9% 58% 32% Streaming Internet video device 5% 64% 30% Portable media player 9% 64% 27% Portable gaming device with Internet connection 6% 71% 23% Other 5% 73% 23% Decrease Stay the same Increase US Broadband Users; n= 791 Q: How will the amount of Internet video you watch on each of the following devices change over the next two years? (professionally produced video) Source: Cisco IBSG Media Cloud Survey, 2012Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 11
  • 12. For more information:http://cs.co/ibsg-streaming