Streaming Video Consumer Trends Q4 2018 Reaching The Post-Peak Attention Economy

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The 20,000 Foot View: With streaming video subscriptions surpassing that of pay-TV in XXX 2018, traditional linear providers are under growing pressure to better understand consumer consumption habits. Pay-TV failed to entice the younger audience to engage with its services as the digital landscape is successfully catering to their consumption needs. Over XXX accounted for XXX of total pay-TV subscribers in XXX 2018. This compares to subscription video on demand (SVOD) services where over XXX only account for XXX of total subscribers. This failure to appeal to younger audiences resulted in pay-TV subscriptions falling five points behind SVOD, at XXX penetration, in XXX 2018. XXX also illustrated an inflection point for digital and streaming services. Weekly active usage (WAU) for key apps and services have declined throughout 2018, which illustrates that the ceiling of the peak attention economy is nearing. With finite time and resources at their disposal, consumers are forced to specialise on select services. This means less time is spent on mainstream social and streaming services. Between XXX and XXX 2018, Facebook’s WAU declined from XXX to XXX while YouTube’s went from XXX to XXX Findings

• Pay-TV subscriptions XXX penetration) fell five points behind household SVOD subscriptions in XXX 2018
• YouTube’s WAU declined four points year-on-year (YoY) from XXX in XXX 2017 to XXX in XXX 2018
• Binge watching among video subscribers declined from XXX in XXX 2018 to XXX in XXX 2018
• Demographic distribution for video subscribers remained largely unchanged in 2018 as SVOD services fail to acquire the older and digitally migrant audience
• Peak attention economy dynamics are more evident, with Facebook declining seven points YoY to XXX WAU, and nearly all social and streaming apps declining in XXX 2018
• Video subscribers with three or more digital subscriptions declined from XXX to XXX between XXX and XXX 2018
• WAU for Catch Up TV peaks in the UK at XXX in XXX 2018, XXX points higher than in the US and Canada
• At XXX Hulu is the leading local SVOD in terms of WAU in the US, whereas the UK’s Now TV, Canada’s Crave TV and Australia’s Stan record penetrations of XXX XXX and XXX XXX of SVOD subscribers are aged between XXX years old in XXX 2018, up from XXX in XXX Up TV WAU declined three points YoY from XXX in XXX 2017 to XXX in XXX 2018

Companies and brands mentioned in this report: Amazon Prime Music, Amazon Prime Video, Apple, AT&T, BBC, BBC iPlayer, Bravo, Comcast, Crave TV, DAZN, DirecTV, DirecTV Now, Dish Network, Disney, Disney+, EPL, Facebook, Foxtel, Hulu, Illico.tv, iView, MLB, NBA, Netflix, NFL, Now TV, Stan, Tencent, TenPlay, UEFA Champions League, Verizon, YouTube