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Magid Study Reveals Impact of Alternative Video Viewing Platforms on Traditional Television and Home Video Markets
Nov 24, 2010 (09:11 AM EST)
NEW YORK, Nov. 24, 2010 /PRNewswire/ -- An annual study of consumer video consumption habits and platforms conducted by Frank N. Magid Associates reveals that despite the increased use of alternative video viewing platforms (like video-on-demand, set-top boxes, instant streaming, and mobile apps), the vast majority of consumers intend to continue to maintain their traditional subscriptions with cable, satellite, and telco TV providers.
For several years, cable, satellite, and telco TV providers have been working under the assumption that as the use of alternative video viewing platforms grows, consumers will increasingly "cut the cord" and cancel their subscriptions. On the contrary, Magid's new study, "2010: The New Age of Video Entertainment," uncovers several consumer behaviors that should persuade the industry to take a second look at earlier defection forecasts, including:
"The average American's capacity to consume video content is impressive," said Maryann Baldwin, Vice President of Magid Media Futures™. "As new video viewing platforms such as instant streaming and mobile apps proliferate, consumers are simply adding them to their portfolio of video viewing options. Our research indicates that this is definitely not a zero-sum game -- at least at this point, it appears that traditional subscription services and alternative viewing platforms can coexist with services like 'TV Everywhere' locking in revenues for traditional providers."
In addition, the study indicates that when the availability of Internet content has caused consumers to cancel their traditional service subscriptions, these circumstances remain the exception. Only a very small minority of consumers are even considering cancelling their subscriptions:
Magid's study also sheds light on the rate and magnitude of adoption for 3D television sets. Among them:
Taken collectively, Magid's "2010: The New Age of Video Entertainment" findings reveal that viewing habits and expectations have calcified somewhat since the demand-driving introduction of HD television sets a decade ago. As a result of this integration of HD television into American life, new areas like 3D, connected TVs, and video streaming should now play a more prominent role in programmer and consumer electronics strategies, with these alternatives considered "additive" to the consumer media experience as opposed to displacing traditional subscription-based video services.
About this study and new topics for 2010:
The online survey was conducted in October 2010 using a nationally representative sample of 1,208 adults age 12 years or older.
New topics of exploration this year include the first measurement of intent-to-purchase 3D television sets. Other new topics include use of nearly one dozen alternative TV show and movie viewing platforms both at home and out-of-home, interest in TV Everywhere-style services from cable and satellite, and more. Alternative platforms explored include streaming over computers, streaming video devices such as AppleTV and Roku, and mobile devices such as mobile video player and smartphones, among others. This is the ninth consecutive annual digital TV and HDTV report released by Frank N. Magid Associates, Inc.
The full report is available for $6,000 by contacting Julie Zipperer at 319-377-7345 or email@example.com. Custom analysis, samples, reports, and in-person presentation/discussions are also available at an additional charge.
About Frank N. Magid Associates, Inc.
Frank N. Magid Associates is a leading research-based strategic consulting firm. Magid helps its clients become more profitable by solving problems and helping them take advantage of opportunities. Magid is unique because, for 53 years, the company has studied human behavior and how marketing and communication will cause consumers to behave in certain ways. Magid uses this unique "consumer lens" to help its clients develop and market products and services that successfully adapt to consumer attitudes, thereby changing behavior in ways that lead to improved financial performance. For more information, please visit Magid's website at www.magid.com.
SOURCE Frank N. Magid Associates