VOD Hits 40% Of Homes

Your kids don’t watch TV the way you do. But then again, you probably don’t watch TV the way you did a few years ago. Consumption habits are rapidly changing for nearly all age groups.

Over-the-top video viewing is skyrocketing in usage. About two of every five homes in the United States used a subscription video-on-demand service like Netflix in the fourth quarter, Nielsen said. In fact, a new study from the research giant also found that 36% of U.S. homes used over-the-top service from Netflix alone in November.

These homes are voracious consumers of TV content. Subscription video-on-demand homes watch nearly three hours of TV a day compared with two hours for consumers who don’t have subscription video-on-demand. Amazon Prime and HuluPlus follow Netflix in use, but Netflix remains far and away the most popular. In homes with subscription video-on-demand, consumers also spend a little more than an hour watching time-shifted content.

This study seems to underscore the long-term value in over-the-top services because such services can augment traditional TV rather than replace it. Many of the homes with these additional services are at a higher income level.

Meanwhile, younger consumers favor YouTube and online video, in many cases. Consumers age 13 to 24 watch a little more than 11 hours each week of free online video. That compares to 8.3 hours each week of regularly scheduled TV, according to a study by Hunter Qualitative Research commissioned by digital shop Defy Media. Many of these younger consumers say they prefer Internet video because the content feels more relatable than TV content, according to the study. 

Bear in mind that Defy Media makes videos for YouTube and other online outlets that aim to reach the millennials.

About 63% of this age group said they would be more likely to try a product or brand that was recommended by a YouTube star, compared to only 48% who said that about a traditional TV or movie star.

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