i3 | December 02, 2020

Video Consumption Sees Healthy Gains Amid Pandemic

If you’re in front of the TV more often these days streaming your favorite content or playing video games, you’re on trend according to new research from CTA. The pandemic has accelerated many pre-existing uptrends in consumer technology—from online shopping to telemedicine—as consumers modify their behavior to cope with the crisis. This dynamic also applies to the age-old habit of watching TV and how we consume video content in general. As a result, the media and entertainment industry is being reshaped before our eyes.

CTA’s Content in the COVID-19 Era: Current Realities and Future Opportunities study (September 2020) illustrates how with more time at home, consumers are watching more content and for longer periods across paid and ad-supported platforms.

How is this Happening?

Innovative content formats and delivery models—such as virtual concerts and new movies released direct to streaming services, are attracting large audiences. Shared viewing on social platforms is drawing many first-time users. Gaming is also experiencing growth, both in use and in how gamers access content.

The combination of more content for viewers and more opportunities to watch it adds up to some big gains in engagement. Nearly two-thirds (65%) of consumers report they are watching video content more often since the pandemic began.

To lean into more content, households across America are adding TV services and reshuffling content subscriptions. For example, the study shows households continue to shed traditional pay TV services in favor of paid subscription video on demand (SVOD) and ad-supported video streaming services, when compared with data from CTA’s previous study in 2018.

Today, 58% of consumers cite pay TV services as a source of video content, down 15 points from 2018. Meanwhile, 71% of consumers cite SVOD services like Netflix or Prime Video, an increase of 19 points from 2018. In fact, the study found 24% of consumers added at least one paid streaming media service to their household in the past three months.

Screen Engagement

Engagement with ad-supported streaming video services like YouTube follow a similar growth trajectory. And yet, for all streaming video’s engagement gains, physical media (e.g., DVDs or Blu-ray Discs) remains a staple, with two-fifths (39%) watching from this source—virtually unchanged from 2018.

Home theater has taken on a new meaning amid the pandemic with 31% of consumers reporting they rented at least one new movie released direct to streaming over the past three months. More than half (52%) of these consumers plan to rent again within the next half-year.

Interestingly, the shift in content engagement patterns is also manifesting a shift in screen engagement. Analysis of self-reported video watching data across screen devices confirms TV is still king, accounting for roughly 60% of all viewing time. This result marks somewhat of a comeback for the big screen. CTA’s 2016 study The Changing Landscape for Video and Content found just 51% of weekly viewing time was attributable to TV.

The study also found most consumers express greater comfort socializing with family and friends at home, versus attending outdoor concerts, sporting events or going to the cinema.

CTA believes the structural changes in media and entertainment will be permanent, but screen viewership may migrate toward mobile screens as people begin to move around more. For now, we can all enjoy movie nights, just don’t forget to pass the popcorn.

31%

Of consumers report they rented at least one new movie released direct to streaming over the past three months.

60%

TV is still king, accounting for roughly 60% of all viewing time. This result marks somewhat of a comeback for the big screen.

Learn about the latest CTA market research and forecasts at CES 2021.

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