i3 - January/February 2016 - 107

Business

BY STEVE KOENIG

M A R K E T B E AT
TV: THE KING OF SCREENS
Looking at consumers' video consumption
habits today, the old maxim of 'The more things
change, the more they stay the same' clearly applies-
at least for now. Innovation has transformed video
content consumption into a mosaic of sources,
screens, media and methods. However, recent
consumer research from CTA shows despite the
protean mix of video content, television remains the
core device for watching video. How long will this
preference hold?

Maskot/Getty Images

CTA's Video Consumption Trends report
suggests TVs will remain the king of
screens for the foreseeable future. Even
among millennials (aged 18-33), who
tend to exhibit the most non-traditional
video content viewing behaviors, 58
percent prefer viewing content on a TV
screen. Among ages 35 and above, we see
a stronger preference (73 percent) for TVs
as the main viewing screen.
Watching Content
When we look closer at sources of video
content (e.g., streaming, video on demand
(VOD), live TV, or recorded on a DVR),
alternative screens or content viewing
devices such as computers, smartphones
and tablets are more often preferred for
watching streaming video content. Nearly
six in 10 (57 percent) U.S. online adults
prefer to watch streamed content on a
screen other than a TV.
Among consumers who prefer television
for their content viewing, screen size and
picture quality are the most frequently cited
reasons for device preference. What better
way to watch a TV show or movie than on
the biggest and best quality screen available?
Among those who prefer alternative devices
for content viewing, preference stems chiefly
from content accessibility, which is why
streaming media pops-up so significantly
here. Although mainstream video content is
widely available across mobile and computer platforms (i.e. TV everywhere) via a
myriad of services and apps, user-generated
content like YouTube, Vine and Periscope
C TA . t e c h / i 3

Some 44 percent of U.S. online adults shopping for a TV this
year will be looking for a set in the 40- to 59-inch range.

likely are driving this behavior.
TV's importance in video content
consumption is found in the purchase
intentions of consumers over the next 12
months. While smartphones (33 percent)
are the top product purchase planned during this period, the second item is a new
TV (29 percent).
What Do People Want?
During holiday 2015 a multitude of TV
deals were available especially on 4K Ultra
High-Definition (UHD) sets. But CTA's
research shows that advanced screen
resolution like 4K is of less importance
compared to screen size and connectivity.
Some 44 percent of U.S. online adults
shopping for a TV this year will be looking
for a set in the 40- to 59-inch range, with
25 percent looking for a set with a 60-inch
or larger screen. More than a third (35
percent) of TV buyers intend to purchase
a smart or connected TV. Just under onefifth (18 percent) will be looking for a 4K
UHD set. The irony is, based on CTA forecasts and manufacturers' plans announced
at CES 2016, most TVs shipping in larger
screen size categories this year will come
with 4K UHD screens by default as panel
makers continue to upgrade their production lines. However, retailers should note
the analysis reveals men are twice as likely
to shop for a 4K UHD set as women (23
percent vs. 12 percent).

Finally, the fiercely competitive arena of
TV services and sources show, consistent
with data from 2014, traditional pay TV
providers (cable, satellite or fiber-to-thehome pay TV services) are still the most
used resources to receive content, though
consumers receiving content through video
streaming services and digital video file
downloads is steadily increasing-another
consistent trend. While adults 35 or older
are more likely to subscribe to pay TV
services than millennials (71 percent vs.
63 percent), millennials are more likely to
stream (77 percent vs. 53 percent).

Data measuring cord-cutting activities of U.S. online adults suggests
the landscape for TV services may
be vastly different in the near future.
Roughly one in 10 (11 percent) report
they dropped their pay TV service
subscription within the past 12
months, while just over one in five
(21 percent) have not had a service provider in at least 12 months.
Cost and lack of utilization are the
most frequently cited reasons for
"cord-cutting". So while TVs will
likely remain the preferred screen
for video consumption in the years
to come, pay TV subscriptions may
soon become a relic of the past.

JANUARY/FEBRUARY 2016

107
http://research.CTA.tech http://CTA.tech/i3
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