The TiVo Q4 2024 Video Trends Report reveals shifts in viewer behavior, presenting both challenges and new opportunities for entertainment providers. Understanding and responding to these video trends is key to thriving in an ever-changing industry driven by technological advancements, evolving business models and content innovation. Here are some key takeaways:
Embracing the era of streamlined spending
Consumers are simplifying their entertainment spending, prioritizing value over quantity. According to the report, the average number of services used decreased from 11.1 in Q4 2023 to 9.9 in Q4 2024. Rather than chasing an abundance of options, viewers are curating their evideo experiences. Entertainment providers can capitalize on this trend toward “just right” service consumption by delivering high-value content and personalized recommendations. Curated packages that cater to specific interests and demographics help streamline the decision-making process for more intentional viewers, so they don’t have to subscribe to multiple services.
The average monthly entertainment spend has dropped to $157.47, down almost $20 from Q4 2023. This decline highlights the importance of demonstrating value. Providers can do this by bundling essential services, offering flexible subscription models and emphasizing the unique benefits of their offerings. .
Maximizing engagement in a value-driven landscape
Despite decreased spending, daily viewership remains consistent at 4.5 hours per day. This indicates viewers are still highly engaged with video content but are more selective about their sources. Providers can leverage this consistency by enhancing the user experience. In addition, improving content discovery, offering personalized recommendations and ensuring seamless navigation can help boost engagement quality. With viewers spending 30% of their viewing time on pay TV, 28% on SVOD and 27% on free AVOD/FAST/Social Video, there’s a clear opportunity to capture a larger share of viewing time by optimizing the user experience across platforms.
Understanding viewer preferences regarding content release schedules is also crucial, and there’s a clear need for flexibility in content delivery. Around half of the respondents prefer entire seasons to be released all at once, while about 19% prefer a weekly release schedule. Providers can cater to both preferences by offering a mix of binge-worthy and episodic content. This can be achieved through strategic partnerships with content creators and leveraging data analytics to understand viewer preferences.
Navigating the evolving discovery landscape
The TiVo Q4 2024 Video Trends Report reveals a shift in how viewers discover content. While word-of-mouth referrals (49%) and social media (39%) remain significant, there’s a notable increase in the use of streaming app home screens and carousel ads (37%) and TV channel guide suggestions (32%). This data emphasizes the importance of optimizing content discovery within the viewing environment. Providers can use their platform’s interface to promote relevant content and personalize recommendations based on viewing history. This also simplifies discovery, making it easier for viewers to quickly find what they want to watch.
The increasing use of companion apps (32% compared to 28% in Q4 2023) also presents an opportunity. Providers can integrate their services with popular companion apps or develop their own to enhance the viewing experience. These apps can offer personalized watchlists, advanced search functionality and social features that connect viewers with their friends and communities.
Smart TVs are becoming the primary viewing platform, with 77% of respondents owning one. This presents a significant opportunity for providers to integrate their services directly into the smart TV ecosystem. Providers can gain a competitive edge by optimizing their apps for smart TV platforms and partnering with manufacturers. The fact that 75% of smart TV owners use built-in apps to watch video reinforces the strategic importance of this platform.
Understanding the nuances of churn and retention
The TiVo Q4 2024 Video Trends Report highlights a key shift in the reasons for SVOD churn. The top reason respondents canceled an SVOD service was because they “weren’t using it enough” (17%). This suggests viewers are becoming more discerning about the value they receive from their subscriptions. Providers can combat this by focusing on personalized recommendations, curated content bundles and flexible subscription options that allow viewers to tailor their experience to their specific needs and budget.
By understanding these evolving video trends, providers can adapt to the changing landscape and create extraordinary viewing experiences that drive customer satisfaction, loyalty and ultimately, revenue growth.
Download the TiVo Q4 2024 Video Trends Report for more key insights on subscriber behavior, entertainment spending, retention strategies and more.
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