Global Video Streaming Trends with UK Spotlight Media Division PROSPECTS
The paid-for TV and video streaming market today is of huge importance to everyone involved with the media industry, for two key reasons:
Global Paid Video Streaming Trends
Understanding and engaging the paid TV and video streamers
The paid-for TV and video streaming market today is of huge importance to everyone involved with the media industry, for two key reasons:
- It has grown enormously in recent years from almost nothing to being used in over half of households in many markets around the world - bringing with it massive commercial opportunities and consequences.
- Everyone wants to knows how much more growth it can sustain, how it will evolve and how many further subscriptions consumers will accept over the long term.
We're all familiar with the dominance of Netflix in the world of video subscription services, but in their wake have come a flood of other entrants with big plans and big pockets, many relatively recent such as Disney+.
It remains to be seen exactly what impact this will have on what has hitherto been a burgeoning market.
We draw upon new latest data from our harmonised TGI Global Quick View consumer data - which explores the behaviour, attitudes and media consumption of connected consumers in 25 key markets worldwide - as well as other Kantar data sources, to understand who today uses paid video subscription services, what the commercial opportunities are and where the markets might be headed.
State of the SVOD Nation
Who is watching and what
New data from our TGI Global Quick View study of consumers in 25 markets worldwide* shows that over half of connected consumers (those aged 16-65 who access the internet for leisure purposes once a week or more) have used paid TV or video streaming services ‘in the last week’.
54% of connected adults have done so, with almost two-thirds of them (65%) watching two or more hours of this content daily.
Some markets have considerably higher penetration of paid video streaming than others, with a handful of Latin American markets particularly prominent, whilst a number of east Asian markets find themselves firmly at the other end of the scale.
In certain markets where consumers access paid video streaming they tend to do so heavily. The USA leads the way with the highest proportion of connected consumers watching a massive five or more hours a day: 19% of paid video streaming users there do so.
Whilst there is a modest bias towards younger age groups when it comes to watching paid video streaming, it isn’t hugely pronounced and over a third of those aged 55-65 claim to have used paid video streaming ‘in the last week’.
Likely to watch doesn’t always mean likely to use multiple providers
High penetration for paid video streaming does not always imply use of multiple streaming services. India is only the fourth highest country of the 25 for using paid video streaming services, but clear top for using at least two and for using at least three such services.
Similarly, both Norway and the USA are not significantly more likely than the other markets to access paid video services, but they are considerably more likely to have accessed three or more paid services (Norway 42% more likely, USA 33% more likely).
Netflix is comfortably most prominent, but significant opportunities remain
Netflix is the undisputed king of the paid services, taking top spot in 21 of the 25 markets with penetration of all connected adults often approaching 50% (in Brazil, Mexico and Argentina way over this) and typically way ahead of the second placed choice.
| Market |
Netflix most popular SVOD service? |
Amazon Prime amongst top 3 SVOD services? |
| Australia |
Yes |
No |
| Belgium |
Yes |
Yes |
| Brazil |
Yes |
Yes |
| Canada |
Yes |
Yes |
| China |
No (not available) |
No |
| France |
Yes |
Yes |
| Germany |
Yes |
Yes |
| Great Britain |
Yes |
Yes |
| India |
No |
Yes |
| Indonesia |
Yes |
No |
| Italy |
Yes |
Yes |
| Japan |
No |
Yes |
| Mexico |
Yes |
Yes |
| Netherlands |
Yes |
Yes |
| Norway |
Yes |
No |
| Poland |
Yes |
No |
| Russia |
No |
No |
| Singapore |
Yes |
Yes |
| South Korea |
Yes |
No |
| Spain |
Yes |
Yes |
| Sweden |
Yes |
No |
| Taiwan |
Yes |
No |
| Turkey |
Yes |
No |
| USA |
Yes |
Yes |
It is noteworthy however that the four markets without Netflix in top spot are some of the world’s biggest: China (where it’s not available), India, Japan and Russia.
In two of those (India and Japan) Amazon Prime takes top spot. Indeed, Amazon Prime is the clear second most prominent provider, albeit less entrenched that Netflix, finding itself in second place in 10 of the markets and third place in a further three.
Almost half of the markets covered have a local or regional player amongst the top three services, showing there is a prominent role for these more localised providers amongst the multinational giants.
In fact there is no clear dominant provider after Netflix and Amazon Prime amongst the top three services. The likes of YouTube Premium, and Google Play are prominent in certain markets, but the field is relatively open here.
*The 25 markets covered on TGI Global Quick View are: Argentina, Australia, Belgium, Brazil, Canada, China, France, Great Britain, Germany, India, Indonesia, Italy, Japan, Mexico, Netherlands, Norway, Poland, Russia, Singapore, South Korea, Spain, Sweden, Taiwan, Turkey, USA
Earning Eyeballs
Reaching and engaging SVOD consumers effectively
A fifth of connected adults spend three or more hours a day watching paid video streaming services online.
These heavily engaged users will be of particular interest to those in - or seeking to enter - the paid video streaming market. It is therefore crucial to understand their other online activities and media consumption in order to engage and reach them as effectively as possible.
This audience is over two-thirds more likely than the average adult to use the internet for online dating, over 50% more likely to use a smart speaker to search for information and 49% more likely to listen to podcasts online.
Top topics they are particularly likely to be interested in or research online include celebrity interviews and stories (44% more likely), video games (38% more likely) and fashion & beauty (28% more likely).
When it comes to their media consumption more generally, they are 54% more likely to be heavy users of video games, 39% more likely to be heavy readers of print magazines and 36% more likely to be heavy listeners of radio.
Favourite TV programme genres include movies (72%), cookery and food (46%) and sci fi/fantasy (46%).
An appreciation of tech is another differentiating theme for those who watch three or more hours a day. They are 34% more likely to agree it is important their house is equipped with the latest technology and 32% more likely to say they like to buy new gadgets and appliances.
Making a Splash
Giving the consumer the SVOD experience they want
Beyond knowing how the paid video streaming market globally is structured today and how best to engage consumers, it is also key to be able to provide the offering that SVOD users today want.
Our recent DIMENSION study* explored what consumers around the world are looking for when it comes to video streaming services. At a fundamental level, it is important how much appetite there is for paid vs free but ad-funded streaming services.
Free but with ads will not always beat paid options
We asked consumers which option they would choose if online TV and video services were available either free with advertising or paid for but without advertising. Tellingly, there was considerable variation by age group. Amongst 18-34 year olds as many preferred a paid option as a free equivalent with ads.
This ties into consumer attitudes towards advertising more broadly. To be willing to pay to avoid ads is indicative of a fundamentally troubled relationship with advertising.
Indeed, our DIMENSION study found that 54% of connected consumers claim to find it intrusive when they receive advertising as a result of past online activity.
Much of this is bound up in privacy worries, with most (54%) connected adults claiming they prefer to see ads that are relevant to their particular interests and needs, but 56% are worried that more tailored content might compromise their privacy.
It is therefore important for video streaming providers to get the personalisation balance right - and not just for advertising (if they offer any), but also within the algorithms that enable their users to find the shows they want as efficiently as possible.
Truly enhanced personalisation is only possible beyond the walled garden
If we look at agreement with some key attitudes around use of SVOD services amongst those who have them, we can see that not far off half feel that they often spend too much time searching for a programme to watch on these services.
Clearly there are opportunities here for those video streaming providers who are able to provide an enhanced facility to get consumers to the programmes they will enjoy as efficiently as possible.
Yet doing so solely by harvesting and applying data that you have on your own customers is likely to not only alienate them from a data privacy perspective, but also only gives you a narrow window into their behaviour and attitudes.
In short, you can understand the 'what' of their behaviour but far less so the 'why'.
Those video streaming providers able to balance their own consumer data with that of representative audience data that gives a broad, in-depth understanding of the consumer in a privacy neutral way, will be more likely to gain the insights that enable them to match their users with the ads and the programmes they will be most engaged with most effectively.
*Our DIMENSION study was conducted across eight markets globally (Argentina, Brazil, China, France, Germany, Spain, UK, USA) on a representative sample of 8,000 connected consumers aged 18+
The COVID-19 pandemic has led to consumer behaviour which has only thrown more of a spotlight on paid TV and video streaming habits.
With consumers stuck at home for weeks on end, many took the decision to sign up for a paid video streaming service.
Indeed, recent research from Kantar's Entertainment on Demand service reveals that in Great Britain alone six million households signed up to an online video streaming service during lockdown, with the majority going to relatively new entrant Disney+.
The consumer behavioural fallout from the COVID-19 pandemic will be considerable and further studies in the months to come will give an indication of its long term impact on the SVOD market.
But one thing we can be sure of is that this hugely significant market never sits still and the societal disruptions of 2020 will only accelerate its rate of change.
It is therefore critical for us all within the media industry to be aware of both the macro and local consumer behavioural trends in SVOD and what evolving commercial opportunities there are to leverage.
GB Spotlight
Understanding and engaging British paid SVOD users
Our TGI Global Quick View data reveals that the proportion of connected consumers in Britain who use paid SVOD services is, at 52%, similar to the figure across the 25 markets as a whole.
However, as the number of services rises, there is a drop off in Britain vs the 25 markets together - for example, here 14% of connected adults have accessed three or more services 'in the last week', but for the 25 markets it is 21%.
In Britain there is a stronger skew towards the younger age groups for use of paid streaming services than there is globally.
Switching from TGI Global Quick View data to take a deep dive into our latest GB TGI consumer data we can examine those who use the most prominent paid SVOD services.
Taking GB adults who claim to have accessed any of Netflix, Amazon Prime, Sky Go, or Now TV ‘in the last 4 weeks’, they are 51% more likely than the average internet-using adult to be aged 15-24 and 57% less likely than the average to be aged 65+.
Especially open to promotional messaging via TV
Over 40% of these GB paid video streaming users believe that because of online TV streaming they now watch more television than they used to, making them 47% more likely than other internet users to do so. This is also a group particularly receptive to commercial messaging on TV.
They are 31% more likely to agree that whilst watching TV they search on the internet for products they see advertised, 28% more likely to say they often notice products or brands that appear in TV programmes and films and 23% more likely to agree that TV tends to influence their opinions.
Mobile internet and gaming are other key media to engage
In terms of other media that these paid streaming users are particularly likely to consume heavily, this tends to be oriented around the more technology driven. They are 71% more likely than the average internet user to be amongst the heaviest fifth of users of mobile internet and 41% more likely to be amongst the heaviest fifth of users of gaming.
SVOD users can be key Word of Mouth champions
These SVOD users are also particularly likely to consider themselves highly influential on a range of tech - something those looking to grow within the market might seek to harness.
Our GB TGI consumer data shows they are considerably more likely than the average internet user to believe it ‘very likely’ they can convince others with their views on smartphones and other mobiles, on TV and AV equipment and on computers, laptops and tablets.
Lockdown has driven heavier use of SVOD services
23% of these paid SVOD users claim to have increased the number of video on demand subscriptions they have since lockdown, making them 40% more likely than the average internet user to do so. They are also 34% more likely to say they have watched more online videos since lockdown.
