The video attention reboot How video is being impacted by the attention recession

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20,000 foot view:  With the attention recession in full swing following the lockdown boom, video is already feeling the pinch as evidenced by Netflix’s declining subscriber count. The mainstreaming of subscription video on demand (SVOD) pulled TV into the digital entertainment sphere, placing it at risk of further disruption from the attentionrecession. Makers of smart TVs, which are becoming a central hub of video consumption, will need to plan for diversity through supporting and facilitating lean- through consumer behaviour. Additionally, the current video focus on ad supported SVOD rollouts will need to factor in declining direct engagement rates as they seek to build recession-proof business models.

Key insights

  • SVOD is inheriting TV’s attention challenges, with only            of consumers paying direct attention to the video content being streamed
  • Direct SVOD engagement declined slightly from            in            2021, to            in            2022, implying that available direct attention is already starting to recede for video
  • Majority indirect engagement creates both churn and ad monetisation risks for video as it moves into the ad supported SVOD era
  •            of consumers do not feel that their TV consumption justifies a video subscription – an early warning sign that peak attention is already here for video
  • While still niche, lean-through ‘creative’ behaviours are becoming more prominent. The audience of creators – those who create music, videos, or use filters, has reached            consumer saturation, peaking at            of           
  • The distinctions between audio, video, and gaming are blurring, with social platforms becoming hubs of clips, reviews, sharing, promotion, consumption, and creation
  • The same technology advances and feature integrations that popularised user- generated content and creation as a lean-through aspect of consumption also allowed niche entertainment to find global fanbases
  • Content with audiences too small to appeal to a mainstream domestic audience can now reach its ideal audiences worldwide – creating sustainable success with true fans, rather than passive tagalongs to the mainstream

Companies and brands mentioned in this report:  Amazon Prime Video, Comcast, Dark, Disney, Disney+, HBO Max, Money Heist, Netflix, Peacock, Roku, Samsung, Squid Game, Shorts, Snapchat, Tiger King, TikTok, and YouTube

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