SVOD uptick makes TV increasingly a connected device

DetailsJoseph O'Halloran | 30 January 2015

Online subscription video services are driving connected TV activities according to research from Futuresource Consulting.

futuresourceThe Living with Digital consumer research reveals what the analyst calls the continued shift in entertainment behaviour amongst respondents, with a stand-out trend of the emergence of TV as an increasingly connected device, either directly on the connected TV or through ancillary devices such as digital media adaptors (DMA) or connected set-top-boxes.

"Connected TV activities and DMA uptake is increasingly driven by subscription video on demand (SVOD) services, which is why video viewing through these devices is more apparent in the UK and USA," explained David Sidebottom, senior analyst at Futuresource Consulting. Connectivity rates for connected TVs have risen to 79% of connected TV owners, with 63% accessing a service at least once a week ... Viewing any type of video is now the most popular entertainment activity on tablets at 57% of tablet owners across all countries, overtaking playing games. 24% of tablet owners now watch paid-for video, which is the highest in the USA at 34%."

FuturesourceFuturesource calculates that DMA ownership levels across all countries doubled to 10% of total respondents, with notable growth in the UK and Germany. It notes that households with kids and over-the-top (OTT) service users were significant drivers of uptake, with US Netflix subscribers four times more likely to own a DMA than non-Netflix subscribers. Multiple ownership was also evident, with around 40% of DMA households having more than one DMA.

"Cord-shaving movie packages is also increasingly evident, with 17% of US subscribers dropping a movie service compared with 13% in the previous wave, with 19-25 year olds and households with kids much more likely to do this," added Sidebottom. "Of these cord-shavers, 21% say they are doing so to use online subscription services instead, up from 13% in the previous wave."