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Magid Media Futures: Digital Video, OTT, SVOD, Messaging, Social Networks, Gaming, Esports and VR
CONFIDENTIAL AND PROPRIETARY © 2016 by Frank N. Magid Associates, Inc. Any duplication, reproduction or usage of this document or any portion thereof without the written consent of the firm is prohibited.
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§ Magid is renowned for its work in the media and entertainment industry, with both traditional and emerging players. We help develop and launch new products and services and work with clients to re-imagine their businesses, furthering content, marketing, distribution, advertising sales, programming, promotion, and branding efforts.
Digital Games Print Media Mobile Cable MSOs TV & Cable Networks
About Magid
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Methodology
• Nationally representative online survey of 2,400 consumers ages 8-64. The sample is matched to the US Census. The study evaluates media attitudes and behaviors of consumers as it relates to devices, video, TV, gaming, social networking and more.
• This sample represents approximately 200 million Americans
• Data was collected from July 21 – August 5, 2016 • A high quality online research panel and data collection firm was
used for recruitment and data collection
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DIGITAL AS PRIMARY ENTERTAINTMENT SOURCE
4
5
Top Platform for Entertainment – Digital Options Overtake TV
32%
44%
4% 6%
2%
29%
46%
6% 5% 3%
33%
39%
8% 7% 8%
28%
40%
10% 7%
9%
24%
39%
13% 10%
8%
25%
37%
14% 12%
6%
Laptop or PC Television Smartphone Video game console Tablet
2011 2012 2013 2014 2015 2016
What is your primary medium for entertainment? Select only one.
Base: Total N=2400. Q1.2 What is your primary medium for entertainment? Select only one.
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37%
25%
14% 12%
6% 6%
21%
31%
20%
16%
5% 6%
20% 21% 18%
22%
13%
5%
Television Laptop or PC Smartphone Video game console
Tablet A connected TV device
Total Millennials Plurals
What is your primary medium for entertainment? Select only one.
Base: Total N=2400. Q1.2 What is your primary medium for entertainment? Select only one.
Digital Devices Exceed TV As Primary Entertainment Source Among Younger Generations
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CORD CUTTING
7
8
1.9% 2.2% 2.7% 2.9%
3.8%
5.7%
Cord-Cutters (18-64)
2011 2012 2013 2014 2015 2016
% of Pay TV Subscribers Extremely Likely To Cancel Pay TV Service in Next 12 Months, And Will Not Switch to Another Pay TV Service
(Among 18-64 Pay TV Subscribers)
Intent To Cord-Cut Continues To Rise
8.7% of 25-34 year-old Pay TV Subscribers say they are very likely to cut
Base: Total ages 18-64 with pay TV service, N=1636. Q10.4. How likely are you to cancel your pay TV service in the next 12 months? Q10.5 If you cancel your current pay TV service in the next 12 months, which of the following are you most likely to do? Based on those ‘extremely likely’ to cancel pay TV N=170
9% of Millennial Pay TV Subscribers say they are very likely to cut
9
20%
20%
29%
32%
36%
39%
45%
75%
I don't watch enough TV to make it worth it
I can watch the TV shows and movies I like on DVD
It's too expensive
I am satisfied with online streaming options on my TV from services like Netflix, Hulu*
I can watch the TV shows and movies I like on the Internet*
I have entertainment options on the Internet*
I am satisfied with what I can receive over-the-air
Combined OTT Reasons*
Reasons for Canceling Pay TV Service (Among very likely cord-cutters)
Combined OTT reasons 2013: 54% 2014: 76% 2015: 77%
Cost reason: 2014: 40% 2015: 30%
OTT Remains Key Driver Of Cutting, Far More Than Cost
Base: Those ‘very likely’ to cancel their pay TV service who will ‘go without pay TV service’ N=56. Q10.6 For which of the following reasons will you go without pay TV service?
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52% Of consumers with a TV set are interested in subscribing to a ‘skinny bundle’. 32% are very interested.
$48: Average fee willing to pay for skinny bundle
Are Skinny Bundles The Future?
Base: Among those with a TV in the HH – Total N=2258; Millennials N=837. Q12.1: How interested are you in subscribing to a skinny bundle or picking and choosing a cable/satellite package with a smaller number of channels at a lower price than a typical cable bundle? Base: Among those interested in a skinny bundle (4-5) and who watch a major channel – Total N=1166; Millennials N=459. Q12.1B: How much would you be willing to spend on this skinny bundle per month? *Skinny bundle defined as picking a cable/satellite package with a smaller number of channels at a lower price than a typical cable bundle.
“Skinny bundle” is defined as picking a cable/satellite package with a smaller number of channels at a lower price than a typical cable bundle
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OTT AND DIGITAL VIDEO
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12
87%
32%
92%
41%
93%
44%
Ever Daily+
2014 2015 2016
Frequency of Viewing Any Type of Video Online on a Computer, Tablet or Smartphone
Daily Online Video Viewing Still On The Rise
Base: Total N=2400. Q34: About how often would you say you watch online video? This is any online video you view on a computer, smartphone, tablet, or TV connected to the Internet.
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53% 64%
53%
26%
59% 70%
64%
37%
70%
84% 80%
41%
72% 86% 83%
43%
Total Millennials Families with kids in HH Boomers
2013 2014 2015 2016
SVOD Subscriptions
Meanwhile, SVOD Subscriptions Have Been Rising Steadily In All Major Demos
Base: Total N=2400. Q28: Do you, or does anyone in your household, subscribe to any of the following? Select all that apply.
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30% 32%
19%
10% 8%
28% 27%
22%
11% 13%
None 1 2 3 4+
2015 2016
# Of SVOD Services Subscribed In A HH
Base: Total N=2400. Q28: Do you, or does anyone in your household, subscribe to any of the following? Select all that apply.
SVOD Market Growing Among Existing Users
2016: Among those who subscribe to at least 1 SVOD service, 63% subscribe to 2 or more
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33% Of ALL video viewing is done on smartphone
or tablet.
46%
19%
14%
20%
Online video on a computer
Video on a smartphone
Video on a tablet
TV connected to the Internet
Among Online Video Viewers
2.5X More online video viewing is being done on TVs connected to the Internet from 2014.
Online Video Viewers Watch One-Third Of All Digital Video On Mobile (Smartphone/Tablet)
Base: Online video viewers, N=2228. Q34.2: In a typical week what percentage of video you watch is viewed online on a computer, smartphone, tablet or a TV connected to the Internet? Must add up to 100%.
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% of device owners who watch full-length TV or movie content on their devices
(Among mobile device owners) 27%
of smartphone users agree “my phone is my TV.”
40%
of Millennial smartphone users agree “my phone is my TV.”
16%
38% 42%
28%
46% 53%
Smartphone Tablet Mobile Devices
2014 2016
Mobile 2016 - Base: Smartphone users, N=2307. Tablet users, N=1843. Smartphone and tablet users, N=1740. Q11.2 Which of the following types of video do you watch regularly (once per week or more) on your tablet? Select all that apply. Q30.2Which of the following types of video do you watch regularly (once per week or more) on your smartphone? Select all that apply.
Smartphones Increasingly Becoming TV Screens – More Full-Length Content Viewed On Mobile Devices
17
22%
18%
20%
30%
17%
22%
31%
33%
Computer connected to TV
Blu-ray player
Internet streaming device
Video game console
2016 2015
Methods Used For Streaming Video To A TV
74% Connect a TV to the
Internet for streaming (+15% from 2015)
50% Millennials
37% Millennials
Video Entertainment 2016 – Base: Total N=1600. Q.20.1 Which of the following do you connect to a TV in order to watch TV shows and movies streaming from the Internet on a TV screen? Select all that apply.
Three Quarters Of Consumers Use A Connected TV – Internet Streaming Devices Are Driving That Growth
18
33%
40%
28%
24%
11%
10%
16%
15%
8%
9%
4%
3%
Smart TV owners
Total
Live TV Streaming to any device* VOD DVR DVD Downloaded/rented online content
In a typical week, what percentage of all your video viewing is done using each of the following?
*Streaming to a PC/laptop, mobile device or TV set. Live TV = ‘live TV shows or movies as they air on broadcast, cable or satellite’
Video Entertainment 2016 - Base: Total, N=1600. Smart TV owners, N=670. Q12.3: Considering all of the following sources you may use to view any type of video content, in a typical week, what percentage of all your video viewing is done using each of the following? MMF 2016 – Base: Those that have a TV in the HH. Q9B: Which of the following do you have in your household? Select all that apply.
Smart TV Adoption Will Accelerate Streaming
Among HHs with TVs – Smart TV Ownership
2016: 39% 2015: 31% 2014: 21% 2013: 15%
19
13%
35%
44%
47%
7%
11%
7%
8%
12%
14%
12%
12%
26%
19%
16%
14%
20%
11%
11%
9%
22%
10%
10%
10%
Live cable or satellite TV
Stream through computer
Stream to connected TV
Stream through console
None Watch this way, but not daily Less than one hour One to two hours Three to four hours Five+
Traditional Live TV Is Still The Most Watched, But A Variety Of Streaming Mediums Are Used As Well
Base: Total N=2400. Q8: On a typical 24-hour day, how many hours do you watch …
On a typical 24-hour day, how many hours do you watch …
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45%
24%
11%
10%
9%
6%
23%
YouTube
Facebook Live
Livestream
Twitch.tv
Periscope
UStream
I don’t ever view livestreaming video
Sources Used To Watch Livestreaming Video
• 77% of 8-64 year olds watch livestreaming video
• 85% of Millennials
Base: Total N=2400. Q36: Which of the following do you ever use to watch livestreaming video? This is any service that you use to view video content that is being produced live to watch on a computer, smartphone, tablet, or TV connected to the Internet. – Top 7 shown
And Livestreaming Is The Next Frontier
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68%
37%
11% 9%
HDTV Smart TV 4K/Ultra HD TV set 3D-TV set
Which of the following do you have in your household?
Base: Total N=2400. Q9B: Which of the following do you have in your household? Select all that apply.
Currently 1 in 10 Report Having A 4K TV In Their Home; Holiday Sales Will Likely Drive This Number Up
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GAMING
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PC Most Widely Used Platform By Active Gamers, But Smartphone Is Close Behind
Percentage of Population Playing Weekly+ On Each Platform
37%
38%
43%
46%
Tablet
Console
Smartphone
PC
Base: Total N=2400; Q117: How often do you play games on the following?
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Cross Platform Play
Weekly+ PC Gamer Weekly+ Smartphone Gamer
Weekly+ Console Gamer
Weekly+ Tablet Gamer
Also Plays PC Weekly+ - 75% 76% 78%
Also Plays Smartphone Wkly+ 70% - 77% 79%
Also Plays Console Weekly+ 63% 67% - 72%
Also Plays Tablet Weekly+ 63% 67% 69% -
Base: All gamers. N=1631. Base: Weekly+ Smartphone Gamers. N=1041. Weekly+ Tablet Gamers. N=889. Weekly+ PC Gamers. N=1102. Weekly+ Console Gamers. N=916. Q117: How often do you play games on the following?
Gaming Is Cross-Platform Today; Majority Of Weekly+ Gamers Play Other Major Platforms
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Among Gaming Devices, Consoles Have The Highest Number Of Hours Played
16%
45%
21% 18% 20%
47%
18% 13% 13%
45%
23% 19% 20%
47%
20%
12%
Less than 1 hour per week 1-5 hours per week 5-9 hours per week More than 10 hours per week
PC Smartphone Console Tablet
How many hours per week do you spend playing games on the following? (Among weekly+ gamers of each platform)
Base: Total N=2400. Q118: How many hours per week do you spend playing games on the following?
Console: 41% game for 5+ hours each week
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SMARTPHONE AND TABLET
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27
12%
29%
44% 57%
66% 67%
2011 2012 2013 2014 2015 2016
2011
2013
2012
2014
Es
t.
31% 44%
61% 71%
82% 85%
2011 2012 2013 2014 2015 2016
Smartphone Owners/Users (Among 8-64 year olds online)
Tablet Owners/Users (Among 8-64 year olds online)
Base: Total N=2400. QI/QJ: Which of the following do you own/use regularly?
Smartphone Penetration is Nearing Saturation; Tablet Growth Is Stagnant
2016: 97% Millennials 2016: 74% Millennials
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56%
55%
50%
47%
42%
31%
29%
25%
57%
56%
63%
64%
41%
38%
36%
33%
Use social networks
Listen to music
Play games
Watch video
Get weather information
Get local news
Get national news
Research products/services to buy online
Smartphone Owners/Users Tablet Owners/Users
On Their Respective Devices, Tablet Users Game and Watch Video More Than Smartphone Users
Which of the following things do you do regularly (at least once per week) on your smartphone/tablet? (Among smartphone and tablet owners/users)
Base: Among smartphone owners/users - Total N=2034; Among table owners/users N=1604. Q170: Which of the following things do you do regularly (at least once per week) on your smartphone? Select all that apply. – Top 8 shown
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51%
49%
7%
15%
13%
23%
19%
13%
9%
53%
47%
11%
14%
10%
23%
19%
13%
9%
Male
Female
8-11
12-17
18-24
25-34
35-44
45-54
55-64
Smartphone Gamers Tablet Gamers
Smartphone Gamers Tablet Gamers
White 64% 64%
Hispanic 16% 16%
Black 11% 12%
College Graduate or Higher Degree 53% 53%
Married 54% 62%
Child(ren) in Household
(asked of adults only) 57% 53%
Income > $75K 44% 45%
Mobile Gamers Are Similar Overall – Tablet or Smartphone
Base: Smartphone Gamers N=1027; Tablet Gamers N=1009. Sc.B: What is your gender? Sc.C: How old are you? Sc.D: Who lives with you in your household? Please select all that apply. Sc.H: Which of the following best describes your racial background? Cl.D: What was the last grade or level of school you completed? Cl.E: What is your approximate annual household income before taxes? This includes the combined salary of all household members who work, income from pension, Social Security, etc. Cl.F: What is your marital status?
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MOBILE PAYERS
30
31
Virtual Good Spending, Tablet Vs. Smartphone
33%
19%
43%
32%
51%
39%
Tablet Smartphone
Tablet and smartphone virtual goods market (Among regular gamers on each device)
2014 2015 2016 2014 2015 2016
MMF Base: Those who own/use a tablet and play games regularly 2016 N=1009; Q7.21 Have you ever bought digital or virtual goods in games on your tablet? Base: Those who own a smartphone and play games regularly 2016 N=1027; Q184 Have you ever bought digital or virtual goods in games on your smartphone?
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Virtual Good Spending, Mobile
$4.586B $5.645B
Mobile
Mobile virtual goods market ($mm)
2015 2016
Is the average digital/virtual good smartphone spend among those who
buy in the past 12 months
$80
Is the average digital/virtual good tablet spend among those who buy in
the past 12 months
$70 MMF Base: Those who own/use a tablet and play games regularly 2016 N=1009; Q7.21 Have you ever bought digital or virtual goods in games on your tablet? Q7.22 About how much did you spend in total on digital or virtual goods in games on your tablet in the last 12 months? N=481. Base: Those who own a smartphone and play games regularly 2016 N=1027; Q184 Have you ever bought digital or virtual goods in games on your smartphone? Base: Those who bought digital or virtual goods on their smartphones, N=375; Q185 About how much did you spend in total on digital or virtual goods in games on your smartphone in the last 12 months
33
ESPORTS
33
34
41%
53%
7%
Yes No Not sure
Over 40% Have Heard Of Esports; Viewership On The Rise, Reaching 26% This Year
Have you ever heard of esports? Esports is also known as competitive gaming or professional gaming.
Base: Total N=2400. Q123: Have you ever heard of esports? Esports is also known as competitive gaming or professional gaming. Q123.2: Do you ever watch esports, full matches or clips, in the following ways? Select all that apply.
Those that have watched an esports event or programming:
2016: 26% 2015: 18% 2014: 12% 2013: 9%
35
50%
50%
7%
10%
13%
18%
17%
18%
17%
65%
35%
5%
12%
17%
26%
20%
12%
8%
Male
Female
8-11
12-17
18-24
25-34
35-44
45-54
55-64
Total
Heard of Esports
Total Heard of Esports
White 62% 64%
Hispanic 17% 17%
Black 13% 12%
College Graduate or Higher Degree 51% 55%
Married 50% 54%
Child(ren) in Household (asked of adults only)
47% 56%
Income > $75K 39% 43%
Those Aware Of Esports Skew Male, 18-44, And Having Children In HH
Base: Total N=2400; Heard of Esports, N=972. Sc.B: What is your gender? Sc.C: How old are you? Sc.D: Who lives with you in your household? Please select all that apply. Sc.H: Which of the following best describes your racial background? Cl.D: What was the last grade or level of school you completed? Cl.E: What is your approximate annual household income before taxes? This includes the combined salary of all household members who work, income from pension, Social Security, etc. Cl.F: What is your marital status?
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50%
50%
7%
10%
13%
18%
17%
18%
17%
72%
28%
5%
13%
14%
33%
25%
7%
4%
Male
Female
8-11
12-17
18-24
25-34
35-44
45-54
55-64
Total
Esports Viewers
Total Esports Viewers
White 62% 65%
Hispanic 17% 17%
Black 13% 12%
College Graduate or Higher Degree 51% 65%
Married 50% 65%
Child(ren) in Household (asked of adults only)
47% 68%
Income > $75K 39% 56%
Base: Total N=2400; Esports Viewers N=621. Sc.B: What is your gender? Sc.C: How old are you? Sc.D: Who lives with you in your household? Please select all that apply. Sc.H: Which of the following best describes your racial background? Cl.D: What was the last grade or level of school you completed? Cl.E: What is your approximate annual household income before taxes? This includes the combined salary of all household members who work, income from pension, Social Security, etc. Cl.F: What is your marital status?
Esports Viewers Skew Male, 25-44, Having Children In HH, And Higher Income
37
34%
28%
21%
19%
18%
36%
Streaming online through an internet site or app which is not from a publisher (e.g. Twitch.tv)
Live, in person
On a TV channel provided by a paid television service (e.g. ESPN, TNT, etc.)
Streaming online through an internet site or app from a publisher (e.g. LoLEsports.com)
Streaming within the app/game itself
No, I never watch esports
Majority Of Those Aware Of Esports Have Watched It; Streaming Online Is Top Format
Do you ever watch esports, full matches or clips, in the following ways? (Among those that have heard of esports)
Base: Among those that have heard of esports before N=972. Q123.2: Do you ever watch esports, full matches or clips, in the following ways? Select all that apply.
64% of those aware watch
esports
38
74%
34%
23%
23%
22%
22%
18%
17%
13%
13%
YouTube
Twitch
Major League Gaming (MLG)
Dailymotion
Ustream
ESL Gaming
LoLesports
Hitbox.tv
GosuGamers
Azubu.tv
Which of the following websites/apps have you used to watch Esports? (Among those that watch Esports content)
Base: Among those that watch esports content – Total N=621. Q123.6: Which of the following websites/apps have you used to watch esports? Select all that apply.
Considering Overall Content Consumption, YouTube Dominates Esports Video Content
Note: “Content” can include live streams, recaps, highlights, etc.
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VIRTUAL REALITY
39
40
VR’s Potential For Success Is High, Nearly A Quarter Showing Strong Interest
Base: Total N=2400. Q152: How interested are you in virtual reality?
24%
13%
22%
19%
23%
Total
Very interested-5
4
3
2
Not at all interested-1
Interest in a virtual reality experience
41
34%
31%
27%
21%
17%
10%
8%
5%
38%
Samsung VR Gear
PlayStation VR
Oculus Rift
Google Cardboard
Microsoft HoloLens
Valve/HTC Vive
Razer OSVR
MergeVR
None of the above
Samsung and PlayStation Lead VR Device Awareness
Which of the following virtual reality products have you heard of?
Base: Total N=2400. Q151.1: Which of the following virtual reality products have you heard of? Select all that apply.
42
40%
37%
35%
24%
9%
10%
Microsoft
Sony
Apple
GoPro
Nikon
None of the above
Various Brands Have The Potential To Succeed In The VR Space If you were to buy a virtual reality viewing device, which of the following brands would you prefer it
come from? (Among those that are at least somewhat interested in VR, select up to two)
Base: Among those that are at least somewhat interested in a VR experience N=1531. Q152.2: If you were to buy a virtual reality viewing device, which of the following brands would you prefer it come from? Select up to two of the following.
43
36%
31%
27%
25%
21%
3%
2%
2%
11%
GoPro
Sony
Microsoft
Apple
Nikon
Xiaomi
DJI
Drift
None of the above
Other Than GoPro, The Big Consumer Electronic Brands Will Be The Winners With 360 Cameras
If you were to buy a virtual reality capture device (360 camera), which of the following brands would you prefer it come from?
(Among those that are at least somewhat interested in VR, select up to two)
Base: Among those that are at least somewhat interested in a VR experience N=1531. Q152.3: If you were to buy a virtual reality capture device (360 camera), which of the following brands would you prefer it come from? Select up to two of the following.
44
49%
38%
35%
33%
32%
31%
28%
27%
Movies
Console/PC games
Virtual Travel
TV Shows
Music videos
Sports
Smartphone/tablet games
Live Events
Traditional Media, Games, and Virtual Travel Lead Primary Use Cases For VR
Base: Among those that are at least somewhat interested in a VR experience N=1531. Q153: What kind of content would you be interested in experiencing through virtual reality? Select all that apply.
What kind of content would you be interested in experiencing through virtual reality? (Among those that are at least somewhat interested in VR)
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Secondary VR Use Cases What kind of content would you be interested in experiencing through virtual reality?
(Among those that are at least somewhat interested in VR)
Base: Among those that are at least somewhat interested in a VR experience N=1531. Q153: What kind of content would you be interested in experiencing through virtual reality? Select all that apply.
24%
23%
21%
20%
18%
17%
15%
15%
15%
11%
Social Networking
Video calls
Vehicular / Adventure Simulations
Live / recorded video games Board games
News
Short-form video clips
Esports
Training for jobs and other activities
Event Replays
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Thank You For Your Attention Mike Vorhaus President, Magid Advisors 818-231-9110 [email protected] Paul Silverman Director of Research 212-515-4490 [email protected] Andrew Hare Director, Research and Strategy 212-515-4538 [email protected] Thomas Schankler Analyst 212-515-4526 [email protected]
Contact Us!
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