MONETIZATION OF VIDEO - JUN 2021 - Pollack ...
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MONETIZATION OF VIDEO JUN
Which distribution models do consumers find most 2021
valuable, and how do they prefer to pay for content
EXCERPT OF FINDINGS
1
People are emerging
from covid-imposed
isolation. But many of
the ways the pandemic
has changed the TV
landscape are likely
here to stay.
2
• Post-pandemic, the average
viewer watches from more
providers than ever before
• Pay TV subscriptions are
declining. But still more people
use a combination of traditional
pay TV streaming services, than
streaming alone
• As consumers stack more paid
subscriptions, ad-supported
content is making a comeback
3
THE FOCUS OF THIS RESEARCH:
How do consumers want to pay for content?
With their money (by subscribing/purchasing) or with their time
(by watching ads?)
How do different services compare?
Which do consumers perceive as most valuable, and are those
perceptions changing as the market evolves?
What makes one provider more valuable than others?
What features and content are most closely connected to
perceived value?
4
YOU’LL SEE TRENDS ON…
Which providers do consumers feel provide the best
VALUE value?
Which model – paid subscription, transactional, ad-
PAY MODELS supported, or subscription/ad tiers – do consumers prefer?
What is the impact of offers like free trials on which
OFFERS providers viewers try?
Which content or features have the greatest impact on
ATTRIBUTES sign up, retention, and perceived value?
5
WE SURVEYED 1,607 TV CONSUMERS
• Age 16-74
• Watch at least one hour of TV per week
• Have broadband at home
• U.S. census balanced
• Data collection completed in June 2021
6GLOSSARY: HERE’S HOW WE’VE DEFINED DIFFERENT CATEGORIES
OF PROVIDERS IN THIS REPORT
SVOD: Paid streaming TV subscription
• Note that during the survey, respondents were
A traditional cable, satellite, or telco TV
asked about specific services rather than MVPD: bundle
categories. We aggregated their responses into
An online TV bundle that includes live
the categories at right in order to explore VMVPD: TV (like YouTube TV, Hulu + Live TV, Sling
perceptions of different types of services. TV, etc.)
Free ad-supported TV (FAST) like Pluto
Free with ads: TV, the Roku Channel, Tubi, the free
version of Peacock, etc.
A paid platform that also has ads (like
AVOD: ad-supported tiers of Hulu On Demand
or HBO Max)
Online TV streaming service with
Network D2C: content from a single network (like
Showtime or STARZ)
Watching TV shows via an over-the-air
Antenna: antenna
Digital Buying/renting from an online source
purchase/rental like Apple, Amazon, VUDU, etc.
Pay per view via a cable, satellite or
PPV via MVPD telco pay TV provider
7KEY FINDINGS 8
WHAT CONSUMERS SPEND ON TV CONTENT IS APPROACHING
THEIR IDEA OF A REASONABLE SPEND
As cord-cutting $73
2021
continues, consumers $85 +$12
are getting closer to
what they think is a
reasonable amount to $72
spend on TV 2020
$94 +$22
What’s a reasonable What I spend on TV
amount to spend overall
9MORE VIEWERS PERCEIVE FREE-WITH ADS PLATFORMS AS
VALUABLE SOURCES OF TV
% who rank each a good/excellent value
Free with
FASTs like Pluto TV and Free with ads 66%
ads
the Roku Channel are
gaining awareness and SVOD
SVOD
subscription
64%
users. In 2021, they also
have the highest
Virtual
perceived value of any VMVPD
MVPD
50%
kind of TV service
Pay TV
Pay TV bundle
bundle
48%
10AGGREGATION IS A BIG OPPORTUNITY FOR PAY TV PROVIDERS
TO CATCH UP ON PERCEIVED VALUE
% who say their pay TV subscription is a
“good” or “excellent” value
Pay TV subs who
have integrated their Watch their SVOD
SVOD accounts are providers through their 36% 30% 66%
pay TV set top box
much more likely to
say that their bundle DON’T watch their
is a good deal SVODs through their 18% 27% 45%
pay TV set top box
% “Excellent” % “Good”
value value
Base: people who subscribe to both an
MVPD *and* at least one major SVOD
11FOR COMPANIES THAT OFFER MORE THAN JUST VIDEO, HIGH
QUALITY CONTENT IS A POWERFUL DRAW
Did you primarily sign up for
Amazon Prime to get…
For example – Amazon All Amazon Prime
50% 50%
Prime video appears to members
generate new Age 18-34 59% 41%
memberships to Prime Age 35+ 42% 58%
overall, and in particular
among key segments HH with kids 70% 30%
like young people and No kids 33% 67%
families with kids
Access to shows and Other benefits like
movies on Prime Video 2-day shipping
12TIERED SUBSCRIPTIONS, WITH OPTIONS ACROSS AD-FREE AND
AD-SUPPORTED CONTENT, ARE ATTRACTIVE TO MANY…
Chose from ad-free, free-with-ads, and
Sample A: limited ads
Assuming content is the
33% 48% 19%
same, when a tiered
subscription is included Pay subscription,
watch without ads
Watch for free,
ads in all shows
Pay lower fee,
watch limited ads
as an option instead of
a limited ads plan, Sample B: Chose from ad-free, limited ads, and tiered
preference is almost
28% 36% 36%
twice as high
Pay subscription, Watch for free, Tiered/both ad and
watch without ads ads in all shows ad-free options
13…AND MAY INCREASE THE TOTAL ADDRESSABLE MARKET
Using HBO Max as a test
case: 40% of current Current subs
Will you keep the current ad-free plan, or
switch to the new ad-supported plan?
subs would consider
61% 39%
switching to the ad-
supported tier. But a Will keep the ad-free tier
for $14.99 per month
Will switch to the tier with ads
for $9.99 per month
quarter of target non- Will you sign up for HBO Max now that
Non-subs
subscribers would there’s an ad-supported tier?
consider signing up 27% 73%
Definitely/probably Definitely/probably not
14POST COVID, THE OPPORTUNITY FOR SAME-DAY-AS-THEATER
RELEASES REMAINS STRONG
Would you pay [$XX] to stream a new movie the
same day that it’s released in theaters?
As we saw during
Def/Prob Not Def/Prob Would
COVID, more than half
of young viewers say 30% $10 70%
58% 42%
they’d pay as much as
36% 64%
$30 to stream a first run 72%
$20 28%
movie. Even with a 52%
48% $30
grain of salt to account 75% 25%
for predictions of future Age 18-34
behavior, that’s a lot
Age 35+
15QUESTIONS? QUESTIONS?
J O N G I E G E NJG
OANCG
K IEGENGACK
PRINCIPAL PRINCIPAL
(603) 661-0068 (603) 661-0068
JONG@HUBRESEARC H LNLG
JO C@. CHO
UMBRESEARCHLLC.COM
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