Streaming video viewing and TV viewing go hand in hand -- except when they don’t.
While a number of studies have shown that streaming video viewers are avid TV watchers as well, many who actively use over-the-top services say they’ll downgrade their multichannel video services in the coming months.
In fact, viewers who are most likely to downgrade their pay TV over the next six months spend a little more than 25% of their time watching streaming video, according to a new study from The Diffusion Group.
These new findings suggest a possible consumer shift. For some heavy streamers, new streaming viewing options are becoming the norm, which also means they may feel more inclined to cut back on pay TV.
TDG found that those who will definitely cut back spend 36% of their time streaming video, those moderately likely to do so weigh in at 26% of their time spent streaming, and those slightly likely to downgrade watch online 21% of the time.
The data is worth noting, as it suggests a correlation between the likelihood to downgrade and the higher use of OTT services. The insight is also a good reminder for operators to stay nimble since the number of alternative video sources is growing. With more networks and programmers offering direct-to-consumer programming, viewers may have less need for a pay-TV service, which increases defections or cutbacks.
In related news, as the use of streaming video grows, so does ad spend in digital video. Marketers have more than doubled their ad spend in original digital video in the last two years, according to a just-released Interactive Advertising Bureau study.